BANGKOK DUSIT MEDICAL SERVICES Public Company Limited ANNUAL REPORT 2013 Z Z*_9@ $S6¥CMT-þKS9 $E ZLV7_I-$ Thailand economic was the same track as the economic growth in the region. It is expected that many businesses in the country might have good opportunity and the bright future. However, at the end of 2013, there were serious political situation in Thailand affect directly to the Thai economy. Bangkok Hospital group affected with political issue as other business. Our hospitals in Bangkok and the province with rely on tourism have been affected. Their proųts from operation have decreased and they had to adKust the targets. .eanwhile, the company would like to inform shareholders and investors that the company does not have direct impact with the political crisis. The management team put a great deal of efforts to develop more efųcient operational strategies as well as measurement to lower cost and expenditure against economic slowdown from political situation.

In addition, the Board of Directors has previously developed corporate governance for becoming more sophisticated and appropriately. The Board of Directors, however, approved corporate information disclosure policy, Supervision of Inside Information Usage and promulgation of Fraud Prevention and Anti-Corruption Policy, which were circulated and communicated to related people for acknowledgement and further action to be taken.

Lastly, on behalf of the Board of Directors, I would like to thank all stakeholders and investors as well as management, medical colleague including other medical personnel in all sectors and all staff for their knowledge, competence and endeavor supporting Bangkok Hospital Group during hard time and retaining sustainable development alongside with Thai society.

¥Åon« Prof« Dr« Arun Pausaúadi¦ Àëäìõðäñòé÷ëè¿òäõçòéÁìõèæ÷òõö ­¯ Message from the Chairman of Executive Committee

Êèööäêèéõòð÷ëèChairman ofIn 2013,the Thailand Executive was faced with many crises Committee including political instability that resulted in the economic slowdown and decease in the number of foreign tourists. However, with a strong foundation, Bangkok Dusit .edical Services Public Company Limited, and the hospitals within its network, was able to overcome such obstacles with few effects as can be seen from the revenue, which has continued to grow 11% compared to 2012. Overcoming such crises was no easy feat in addition to the internal management policy developed by .anagement in response to the situation, doctors, nurses and staff at all levels endeavored to improve service quality in order to maintain the excellent service standards of the Company. The Company postponed the grand opening of new hospitals to slightly later dates in order to ensure that the hospitals were fully prepared to provide quality service and create such an impression that the patients would pass on the word and keep returning regularly to the hospitals when in need of medical services. In addition, the Company readied to service foreigners, especially from Southeast Asia when AEC will be introduced. Throughout the past year, Bangkok Dusit .edical Services Public Company Limited has continued to unrelentingly develop its capacity. The Company focuses on medical research to promote new knowledge, expansion of primary service to integrated clinics covering all areas of Bangkok, as well as preparations for the expansion into neighboring countries such as Cambodia and Laos. .oreover, the Company values and recogni[es the signiųcance of social responsibility for sustainable development. Besides the Green Health ProKect in association with the 7eKdusit Foundation under the 3oyal Patronage of Her 3oyal Highness Princess Galyani 7adhana ,rom Luang /aradhiwas 3aKanagarindra, the Company also has many on-going activities such as establishing neighbor relationships to care for families living nearby the hospitals, promoting health of neighbors of the hospitals within the Bangkok Hospital /etwork for a healthy society, as well as enhancing the services of doctors, nurses and staff in order to build a service-minded culture under professional ethics, which is one of the important goals of the Bangkok Hospital /etwork. On behalf of Bangkok Dusit .edical Services Public Company Limited, I would like to express my sincere gratitude to our investors and stakeholders who have entrusted and continuously supported activities of the Bangkok Hospital /etwork. I would also like to thank the doctors, nurses, and all personnel for their role in the growth of our organi[ation. 8e are determined to continuously develop our organi[ation and be a private hospital for the Thai people as well as create a sustainably healthy society.

¥Mr«Prasert PrasarttongªOsoth© M«D«¦ Àëäìõðäñòé÷ëèÂûèæø÷ìùèÀòððì÷÷èè ­° Financial Highlights Financial Highlights

Revenue from Hospital Operations and Growth Net profit and Net Profit Margin

49.8%

12.6% 11.9% 25.8% 10.6% 11.0%

35,224 44,307 49,170 3,907 5,778 6,113 2011 2012 2013 2011 2012 2013 Remark Excluding Non-Recurring Items Revenue from Hospital Operations (Million Baht) /et Proųt (Million Baht) Growth on Revenue /et Proųt Margin from Hospital Operations

5 Years Share Prices (2009-2013) Compared to SET Index SET Index BGH Share Price (Baht) 1,800 180 1,600 160 1,400 140 1,200 120 1,000 100 800 80 600 60 400 40 200 20 0 0 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

SET Index Share Price of Bangkok Dusit Medical Service PCL. (BGH) 04 Financial Highlights 05

1.2 1.0 0.8 3.8 1.8 8.6 0.8 0.8 0.3 12.6 28.6 33.0 10.9 10.1 35.8 34.7 17.6 97.2 10.6 16.4 27.4 11.1 41.2 2011 3,907 4,386 58,792 25,900 32,892 35,224 36,726 0.8 0.7 0.9 8.3 0.8 1.3 9.1 0.8 0.8 0.3 11.0 32.7 32.2 11.2 43.1 35.7 18.8 98.3 12.6 16.8 27.9 12.6 48.1 2012 5,778 7,849 68,461 30,074 38,387 44,307 45,994 0.9 0.8 0.7 9.3 8.6 3.0 1.3 8.4 0.7 0.8 0.4 50.6 10.2 35.4 38.8 41.7 34.8 17.2 97.8 11.9 15.8 26.0 11.4 2013 6,113 6,261 76,399 33,755 42,644 49,170 51,158 erations and revenue from goods and food Q er share Q ital o Q enses Q er share/earnings Q t/revenue from hos 4/ ų

ro 1/ Q 1/

/interest ex

on-Recurring Items) ividend 3/ % / (Million Baht)

ross 5%"  I 2/  ( #

 E 1/ (Million Baht)  out ratio Z t Margin a t margin ų Q ų t Margin t (Excluding t ility Ratio ro ų ų ų C Q ta ų ciency Ratio ividend ross o % ( et Pro et Pro / EBIT to Net Sale Other Income Margin Operating Cash Flow to EBIT Net Pro Return on Equity &Gų Return on Assets (%) Return on Fixed Assets (%) (x) Asset Turnover Financial Policy Ratio Total Liabilities to Equity (x) Total Interest Coverage (x) Commitment Coverage on Cash Basis (x) Dividend Payout Ratio (%) Gross Pro Liquidity Ratio Current Ratio (x) Quick Ratio (x) Operating Cash Flow Ratio (x) (x) Account Receivable Turnover Average Collection Period (Days) (x) Inventory Turnover Average Inventory Period (Days) (x) Account Payable Turnover Average Payable Period (Days) Cash Cycle (Days) 1S Balance Sheets Assets Total Liabilities Total Equity Shareholders’ Total Income Statements Operations Revenue from Hospital Income Operating Total / /  3/ Interest coverage 1/ Excluding non- recurring items which are gain on fair value adjustment of investments and share of income from 1/ Excluding non- recurring items which are gain on fair value adjustment of investments and share of investments in associates in 2013, 2012 and 2011 2/ Financial Highlights Financial THE MORE, THE STRONGER, THE BETTER Bangkok Hospital HEALTHCARE Chiang Mai

Bangkok Hospital Phitsanulok

Bangkok Hospital Wattanosoth Hospital

Bangkok Heart Samitivej Hospital Hospital Sukhumvit

BNH Hospital Samitivej Hospital Srinakarin

Phyathai 1 Samitivej Hospital Hospital Thonburi

Phyathai 2 Hospital

Phyathai 3 Bangkok Hospital Hospital Prapradaeng

Paolo Memorial Hospital Phaholyothin Bangkok Hospital Hua Hin Paolo Memorial Hospital Samutprakarn

Paolo Memorial Paolo Memorial Hospital Chokchai 4 Hospital Rangsit

Paolo Memorial Bangkok Hospital Hospital Nawamin Chinatown

Bangkok Hospital Samui

BDMS has 29 hospitals in Thailand and 2 in Bangkok Hospital Cambodia as shown Phuket

in the map. Dibuk Hospital 06 SAMITIVEJ

Bangkok Hospital Udon

Bangkok Hospital Khon Kaen T H A I L A N D

Bangkok Hospital Ratchasima

Bangkok Hospital Pak Chong

Bangkok Hospital Chanthaburi

Royal Angkor C A M B O D I A Hospital

Bangkok Hospital Royal Rattanak Trad Hospital International Clinic Koh Chang

Royal Phnom Penh Hospital

Bangkok Hospital Rayong

Jomtien Hospital Sri Rayong Samitivej Hospital Pattaya Hospital Chonburi

Bangkok Hospital Samitivej Hospital Phyathai Hospital Pattaya Sriracha Sriracha

Future Expansion

Current Bangkok Hospital Hadyai 07 Group Structure Group Structure as at December 31, 2013 More than 90%

BPK 99.7 H health 100.0 BHI 99.9 BHH 98.8 BNH 91.5 BPB 100.0

Royal Abu BSH 100.0 SVH 95.8 SSH 69.8 BDMS ACC 100.0 Dhabi 30.0

BTH 99.8 BKY 100.0 Irving 96.0 TrainingBDMS 100.0

Royal BCH 99.7 BUD 100.0 HoldingSV 100.0 BKK 100.0 ANB 100.0

First BPH 97.3 BKH 90.9 Health 100.0 BRH 100.0 BST 100.0

BCM 100.0 BPL 100.0 Sodexho 74.0 BKK 100.0 SCH 100.0 Initial Company Name ANB A.N.B. Laboratory Co., Ltd.

InterBDMS Sing 100.0 BCH Wattanavej Co., Ltd. BCM Bangkok Hospital Chiangmai Co., Ltd. N Health B-Cop Bangkok Helicopter Services Co., Ltd. Asia 100.0 BDMS Acc BDMS Accounting Co., Ltd. BDMS Inter BDMS International Medical Services Co., Ltd. InternationalBDMS 100.0 BDMS Inter Sing BDMS Inter Pte. Ltd. PPMS 100.0 BDMS Training BDMS Training Co., Ltd. BH Bumrungrad Hospital PCL. BHH Bangkok Hospital Hadyai Co., Ltd. BIO 95.0 BHI Bangkok Health Insurance Co., Ltd. BIO Bio-Molecular Laboratories GLS 100.0 (Thailand) Co., Ltd. BKH Bangkok Hospital Ratchasima Co., Ltd. BKK Bangkok Hospital Khon Kaen Co., Ltd. BKY Bangkok Hospital Khao Yai Co., Ltd. BNH BNH Medical Center Co., Ltd. BPB Bankok Premier Life Insurance Co., Ltd. BPD Bangkok Hospital Prapradaeng Co., Ltd. BPH Bangkok Hospital Pattaya Co., Ltd. BPK Bangkok Hospital Phuket Co., Ltd. 08 Group Structure

50-89% 20-49% Less than 20%

S.R. Udon PPCL 98.4 MP 86.9 Property 49.0 Pattana 15.3

Seam PMED 100.0 PYT1 100.0 RAH 80.0 Reap 49.0

PSAMUT 93.5 PYT2 99.2 RRH 70.0 PPFP 49.0

PCHOK 85.7 PYT3 98.2 BPD 84.0 B-COP 49.0

PNW 99.8 PYTS 74.1 KDH 55.3 RAM 38.2

COOL & JOY 30.0 BH 23.9

Initial Company Name Initial Company Name BPL Bangkok Hospital Phitsanulok Co., Ltd. PYT 1 Phyathai 1 Hospital Co., Ltd. BRH Bangkok Hospital Rayong Co., Ltd. PYT 2 Phyathai 2 Hospital Co., Ltd. BSH Bangkok Hospital Samui Co., Ltd. PYT 3 Phyathai 3 Hospital Co., Ltd. BST Bangkok Hospital Surath Co., Ltd. PYTS Sriracha Nakorn General Hospital PCL. BTH Bangkok Hospital Trad Co., Ltd. RAH Angkor Pisith Co., Ltd. BUD Bangkok Hospital Udon Co., Ltd. RAM Ramkhamhaeng Hospital PCL. Cool & Joy Cool & Joy Co., Ltd. Royal Abu Dhabi Al Ghaith Bangkok Dusit Management First Health First Health Food Co., Ltd. Service LLC. GLS Greenline Synergy Co., Ltd. Royal BKK Royal Bangkok Healthcare Co., Ltd. Irving Irving Sheridan SE Co., Ltd. RRH Royal Rattanak Medical Services Co., Ltd. KDH Thonburi Medical Centre PCL. S.R. Property S.R. Property Co., Ltd. MP The Medic Pharma Co., Ltd. SCH Samitivej Chonburi Co., Ltd. N Health National Healthcare Systems Co., Ltd. Seam Reap Seam Reap Invesment Co., Ltd. N Health Asia N Health Asia Pte. Ltd. Sodexho Sodexo Healthcare Support Service PCHOK Siam Medical Co., Ltd. (Thailand) Co., Ltd. PMED Paolo Medic Co., Ltd. SSH Samitivej Sriracha Co., Ltd. PNW Thai Medical Center PCL. SV Holding SV Holding Co., Ltd. PPCL Prasit Patana PCL. SVH Samitivej Plc. PPFP Phnom Penh First Property Co., Ltd. Udon Pattana Udon Pattana Co., Ltd. PPMS Phnom Penh Medical Services Public Co., Ltd. PSAMUT Paolo Samut Prakran Co., Ltd. 09 Board of Directors Board of Directors

1. Professor Emeritus Arun Pausawasdi, M.D. Chairman

2. Mr.Chuladej Yossundharakul, M.D. 1st Vice Chairman

3. Mr.Wichai Thongtang 2nd Vice Chairman 12 4. Mr.Prasert Prasarttong-Osoth, M.D. Group CEO & President 5. Mr.Pongsak Viddayakorn, M.D. Director 6. Mr.Chatree Duangnet, M.D. Director 34 7. Mr.Pradit Theekakul Director 8. Mr.Chirotchana Suchato, M.D. Director

56

78 10 Board of Directors

9. Professor Emeritus Santasiri Sornmani, M.D. Independent Director

10. Mr.Chawalit Setthmethikul Independent Director

11. Mr.Somchai Sujjapongse, Ph.D. 910Independent Director 12. Mr.Sripop Sarasas Independent Director 13. Mr.Thongchai Jira-alongkorn Director 14. Mrs.Phornsiri Manoharn Independent Director 11 12 15. Mr.Sombut Uthaisang Independent Director

13 14

15 11 Company Management Bangkok Dusit Medical Services PLC. Company Management

Professor Emeritus Mr. Prasert Prasarttong-Osoth, M.D. Arun Pausawasdi, M.D. Chairman of Executive Committee/ Chairman of the Board of Directors Authorized Director/CEO & President 76 years 80 years Education Education Ļ Directors Accreditation Program Class 45, Ļ Directors Accreditation Program Class 45, Thai Institute of Directors Association Thai Institute of Directors Association Ļ Dr. Med, Hamburg University, German Ļ Certiųcate from National Defense College, Course for Ļ Facharzt fur Chirurgie, The Medical Council of the Joint State Private Sector, Class 1 Hamburg, German Ļ Bachelor Degree from Siriraj Medical School, Ļ Certiųcate of Medical Clinic, Mahidol University University of Medicine Ļ Medical Doctor, Faculty of Medicine Siriraj Hospital, Mahidol University Experience Ļ Member of National Legislative Council (Senator) Experience Ļ Member of National Legislative Council Ļ Assistant to Ministry of Public Health Ļ Surgeon in Department of Surgery, Faculty of Medicine Ļ President, Royal College of Surgeons of Thailand Siriraj Hospital Ļ Secretary General, Royal College of Surgeons of Thailand Ļ Chairman of Scientiųc Session Medical, Other Position The Medical Association of Thailand Ļ Chairman, The Medic Pharma Co., Ltd. Ļ Dean, Faculty of Medicine Siriraj Hospital, Mahidol University Ļ Chairman, Bangkok Hospital Chiangmai Co., Ltd. Ļ Director of the Medical Association Ļ Director/CEO, Bangkok Airways PCL. Ļ Chairman, Bangkok Airways Holding Co., Ltd. Other Position Ļ Chairman, Centre for Continuing Medical Year of appointed to be a director Education of Thailand Ļ 1994 Ļ Vice President, The Prince Mahidol Award Foundation Board of Director meeting attendance Ļ Member of the Thai medical registration license committee Ļ 14/14 Ļ Vice President, Siriraj Foundation Ļ Director of Chao Phya Hospital Plc. Number of shareholding* Ļ Director of Chao Phya Medical Center Co., Ltd. Ļ 326,275,534 shares (21.06%) Relationship among other management Year of appointed to be a director Ļ None Ļ 1998 Board of Director meeting attendance Ļ 14/14 Number of shareholding* Ļ 381,871 shares (0.02%) Relationship among other management Ļ None

Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). 12 : Directors Proųle as of 31 December 2013 Company Management

Mr. Chuladej Yossundharakul, M.D. Mr. Wichai Thongtang 1st Vice Chairman/Executive Director/ 2nd Vice Chairman Authorized Director 67 years 81 years Education Ļ Certiųcate from Thai Institute of Directors Association Education Ļ Directors Accreditation Program (DAP) # 15 Ļ Medical Doctor, Faculty of Medicine Siriraj Hospital, Mahidol University Ļ Audit Committee Program (ACP) # 3 Ļ Diplomate of American Board of Surgery Ļ Directors Certiųcation Program (DCP) # 62 Ļ Fellow American College of Surgeons Ļ Financial for Non-Finance Director (FND) # 21 Ļ Fellow American College of Chest Physicians Ļ Role of the Chairman Program (RCP) # 11 Ļ Fellow Royal College of Surgeons of Thailand Ļ Capital Market Academy # 9 Ļ Directors Accreditation Program Class 45, Ļ Master’s Degree of Public Administration, Thammasat University, Thai Institute of Directors Association Bangkok, Thailand Ļ Bachelor’s Degree of Law, Thammasat University, Experience Bangkok, Thailand Ļ Head, Surgical Unit, National Cancer Institute Experience Ļ Hospital Director, Karuna Pitak Hospital Ļ President and CEO of Sikarin Hospital Plc. Ļ Hospital Director, Bangkok Hospital Ļ Vice Chairman of KPN, Yamaha Group Other Position Ļ Chairman of Audit Committee, KPN Automotive Plc. Ļ Chairman, Bangkok Hospital Prapadaeng Co., Ltd. Ļ Chairman of the Board, Health Network Plc. Ļ Director, Bangkok Hospital Pattaya, Co., Ltd. Ļ Chairman of the Board, Yannaphan Plc. Ļ Executive Vice President of IVGlobal Securities Year of appointed to be a director Other Position Ļ 1994 Ļ Chairman, Prasit Patana PCL. Board of Director meeting attendance Ļ Chairman, Phyathai 1 Hospital Co., Ltd. Ļ 14/14 Ļ Chairman, Phyathai 2 Hospital Co., Ltd. Ļ Chairman, Phyathai 3 Hospital Co., Ltd Number of shareholding* Ļ Chairman, Sriracha Nakorn Hospital PCL. Ļ 27,598,795 shares (1.78%) Ļ Chairman, Paolo Medic Co., Ltd Relationship among other management Ļ Chairman, Paolo Samutprakarn Co., Ltd Ļ None Ļ Chairman, Paolo Chokchai 4 Co., Ltd Ļ Chairman, Paolo Nawamin Co., Ltd Ļ Head of the Wichai Thongtang Law Firm Ļ Chairman of the Board of Directors and Executive Director of Grand Asset Hotels and Property PCL. Ļ Executive Vice President of Metromachinery Co., Ltd. Ļ Chairman of Cable Thai Holding PCL. Board of Director meeting attendance Ļ 2011 Number of shareholding* Ļ 14/14 Relationship among other management Ļ 186,317,769 shares (12.03%) Relationship among other management Ļ None Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). : Directors Proųle as of 31 December 2013 13 Company Management

Mr. Chatree Duangnet, M.D. Other Position Executive Director/Authorized Director/ Ļ Chairman, Bangkok Hospital Samui Co., Ltd. Ļ Chairman, Greenline Synergy Co., Ltd. Chief Operating Officer-Medical Affairs/ Ļ Chairman, Bangkok Hospital Udon Co., Ltd. CEO of Bangkok Hospital Medical Center Ļ Chairman, National Healthcare Systems Co., Ltd. 69 years Ļ Chairman, Bio Molecular Laboratory (Thailand) Co., Ltd. Ļ Chairman, Bangkok Health Insurance PCL. Education Ļ Chairman, Bangkok Premier Life Insurance Broker Co., Ltd. Ļ Directors Accreditation Program Class 54, Ļ Director, Bangkok Hospital Chaingmai Co., Ltd. Thai Institute of Directors Association Ļ Director, Prasit Patana Plc. Ļ Certiųed of National Defense College Ļ Director, Phyathai 1 Hospital Co., Ltd. Ļ Fellow, American College of Medical Quality Ļ Director, Phyathai 2 Hospital Co., Ltd. Ļ Certiųed, American Board of Quality Assurance & Utilization Ļ Director, Phyathai 3 Hospital Co., Ltd Review Physicians Ļ Director, Sriracha Nakorn Hospital Plc. Ļ Fellow, American Academy of Pediatrics Ļ Director, Paolo Medic Co., Ltd. Ļ Certiųed, American Board of Pediatrics Ļ Director, Paolo Samutprakarn Co., Ltd Ļ Medical Doctor, Faculty of Medicine, Ļ Director, Paolo Chokchai 4 Co., Ltd Chulalongkorn University Ļ Director, Paolo Nawamin Co., Ltd Experience Ļ Director, Bangkok Helicopter Services Co., Ltd. Ļ Group Chief Medical Ofųcer, Bumrungrad Hospital, Bangkok Ļ Chairman, B.D.M.S. International Medical Services Co., Ltd. Ļ Chief Executive Administrator, Bangkok Hospital, Bangkok Ļ Chairman, S.R. Property Investment Co., Ltd. Ļ Clinical Assistant Professor of Pediatrics, College of Medicine, Ļ Chairman, Siem Reap Land Investment Co., Ltd. Pennsylvania State University, Pennsylvania, USA Ļ Director, Angkor Pisith Co., Ltd. Ļ Chairman of the Board, Jameson Physician Hospital Ļ Director, Phnom Penh Medical Services Co., Ltd. Organization, New Castle, Pennsylvania, USA Ļ Director, Phnom Penh First Property Co., Ltd. Ļ President, Lawrence Independent Physician Association, Ļ Director, Rattanak Medical Services Co., Ltd. Lawrence County, Pennsylvania, USA Ļ Director, Sodexho Healthcare Support Services (Thailand) Co., Ltd. Ļ Physician Executive, Jameson Health System, New Castle, Ļ Director, Supeior Bio Tech Co., Ltd. Pennsylvania, USA Ļ Training courses in QA/UR/RM. American Board of Quality Year of appointed to be a director Assurance & Utilization Review Physicians, USA Ļ 2006 Board of Director meeting attendance Ļ 14/14 Number of shareholding* Ļ 220,000 shares (0.01%) Relationship among other management Ļ None

Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). 14 : Directors Proųle as of 31 December 2013 Company Management

Mr. Pongsak Viddayakorn, M.D. Mr. Pradit Theekakul Director Executive Director/Authorized Director/ 80 years Executive advisor to CEO Education 55 years Ļ Honorary Doctorate in Humanities, Universities of Baguio Education Ļ Directors Accreditation Program Class 45, Ļ Directors Certiųcation Program Class 29th, Thai Institute of Directors Association Thai Institute of Directors Association Ļ Honorary Doctorate in Business Management, Christian University Ļ Bachelor Degree of Law Chulalongkorn University/Bangkok Ļ Certiųcate from National Defences College Ļ The Thai Barrister Ļ DTM&H Diploma , Faculty of Tropical Medicine and Hygiene, Ļ Bachelor Degree or Arts (Political Science) Mahidol University Ramkamhaeng University/Bangkok, Thailand Ļ Post Graduate Study, University of Pennsylvania, USA. Experience Ļ Medical Doctor, Faculty of Medicine Siriraj Hospital, Ļ Director, Samitivej PCL. Mahidol University Ļ Director, Prasit Patana Plc. Ļ Director, Phyathai 1 Hospital Co., Ltd. Experience Ļ Director, Phyathai 2 Hospital Co., Ltd. Ļ President / Bangkok Dusit Medical Services PCL. Ļ Director, Phyathai 3 Hospital Co., Ltd Ļ Director of The Medical Heath Care Centre of Ļ Director, Sriracha Nakorn Hospital Plc. The Teacher Council of Thailand Ļ Director, Paolo Medic Co., Ltd Ļ Member of consultation committee of the Bangkok Metropolitan Ļ Director, Paolo Samutprakarn Co., Ltd Administration Governor (Healthcare) Ļ Director, Paolo Chokchai 4 Co., Ltd Ļ Chairman, Private Hospital Association Ļ Director, Paolo Nawamin Co., Ltd Ļ Director of Medical Association Ļ Director, Thonburi Medical Center PCL. Ļ Director, Bangkok Hospital Chaingmai Co., Ltd. Other Position Ļ Director, National Healthcare Systems Co., Ltd. Ļ Vice Chairman, Samitivej Plc. Ļ Director, Royal Bangkok Healthcare Co., Ltd. Ļ Director, A.N.B. Laboratories Co., Ltd. Year of appointed to be a director Ļ Director, Bangkok Health Insurance PCL. Ļ 1994 Ļ Director, Bangkok Premier Life Insurance Broker Co., Ltd. Board of Director meeting attendance Ļ Director, BDMS Training Co., Ltd. Ļ 10/14 Ļ Director, BDMS Accounting Co., Ltd. Ļ Director, Bangkok Helicopter Services Co., Ltd. Number of shareholding* Ļ Director, Sodexo Healthcare Support Services (Thailand) Co., Ltd. Ļ 100,000 shares (0.01%) Ļ Director, Sodexo Support Services (Thailand) Co., Ltd. Relationship among other management Ļ Senior Executive Vice President - Administration, Bangkok Airways PCL. Ļ None Ļ Director, Bangkok Airways Holding Co., Ltd. Ļ Director, Catering - Bangkok Airways Co., Ltd. Ļ Director, Thai Petroleum Service Co., Ltd. Ļ Chairman, Bangkok Air Catering, WFS-PG Cargo Co., Ltd. Ļ Director, Worldwide Flight Services Bangkok Air Ground Handling Co., Ltd. Other Position Ļ 2008 Year of appointed to be a director Ļ 14/14 Board of Director meeting attendance Ļ 1,309,700 shares (0.08%) Relationship among other management Ļ None Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). : Directors Proųle as of 31 December 2013 15 Company Management

Mr. Chirotchana Suchato, M.D. Professor Emeritus Santasiri Sornmani, M.D. Director Chairman of Audit Committee/Independent Director 78 years 79 years Education Education Ļ Honorary Doctorate in Business Management, Ļ Certiųcate from Thai Institute of Directors Association Christian University Ļ Directors Accreditation Program Class 43 Ļ Directors Accreditation Program Class 45, Ļ Role of Compensation Committee Thai Institute of Directors Association Ļ Ph.D. (Tropical Medicine), Liverpool University Ļ Diplomate of American Board of Radiology, Ļ Medical Doctor, Faculty of Medicine Siriraj Hospital, Mahidol University Downstate University of New York Ļ Graduated Course Radiobiology at M.D. Anderson Hospital, Experience Houston, Texas Ļ Vice President for Administration, Mahidol University Ļ Medical Doctor, Faculty of Medicine Siriraj Hospital, Ļ Dean, Faculty of Tropical Medicine, Mahidol University Mahidol University Ļ Member, Expert Committee on Food Borne Parasitic Diseases, WHO Experience Other Position Ļ School Director, School of X-Tray Technician Ļ Vice chairman, The Medic Pharma Co., Ltd. Ļ Professor of Radiology division, Faculty of Medicine, Year of appointed to be a director Ramathibodi Hospital Ļ 1994 Ļ Consultant to Radiology, Clinic of The Teacher Council of Thailand Board of Director meeting attendance Ļ 13/14 Other Position Number of shareholding* Ļ Director, Bangkok Hospital Pattaya Co., Ltd. Ļ 1,565,127 shares (0.10%) Year of appointed to be a director Relationship among other management Ļ 1994 Ļ None Board of Director meeting attendance Ļ 14/14 Number of shareholding* Ļ 39,408,009 shares (2.54%) Relationship among other management Ļ None

Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). 16 : Directors Proųle as of 31 December 2013 Company Management

Mr. Somchai Sujjapongse, Ph.D. Mr. Sripop Sarasas Independent Director/ Independent Director/ Member of Audit Committee Member of Audit Committee 52 years 57 years Education Education Ļ B.A. (Economics) (Hons.) 1984 Ļ Certiųcate, Audit Committee Program - ACP 1/2004 Chulalongkorn University, Bangkok, Thailand Thai Institute of Directors Ļ M.A. (Economics) 1985 Ļ Certiųcate, Director Certiųcation Program 22/2002 The Ohio State University, Columbus, Ohio, U.S.A. Thai Institute of Directors Ļ Ph.D. (Economics) 1990 Ļ Diploma Thai Institute of Directors The Ohio State University, Columbus, Ohio, U.S.A. Ļ Master Degree in Business Administration (Finance) Experience Ļ University of Southern California, U.S.A. Ļ Director - General, State Enterprise Policy Ofųce (SEPO) Ļ Director - General, The Customs Department Experience Ļ Director - General, Fiscal Policy Ofųce, Ministry of Finance Ļ President & CEO Krung Thai Asset Management PCL. Ļ Fiscal Policy Advisor, Fiscal Policy Ofųce, Ministry of Finance Ļ Managing Director/Phatra Securities PCL. Ļ Deputy Director - General, Fiscal Policy Ofųce, Ļ Chief Executive Ofųcer/General Environmental Conservation PCL. Ministry of Finance Ļ Director, Bureau of Fiscal Policy, Fiscal Policy Ofųce, Other Position Ministry of Finance Ļ Chairman of Audit Committee, Bangkok Airways PCL. Ļ Director, Fiscal Risk Management Group, Fiscal Policy Ofųce, Ļ Director/Member of Audit Committee Ministry of Finance The Royal Ceramic Industry PCL. Ļ Director, Fiscal Policy and Planning Division, Ļ Director/Member of Audit Committee Fiscal Policy Ofųce, Ministry of Finance Advanced Information Technology PCL. Ļ Director, Savings and Investment Policy Division, Ļ Director/Member of Audit Committee Kiattana Transport PCL. Fiscal Policy Ofųce, Ministry of Finance Ļ Director/Chairman of Audit Committee Golden Lime PCL. Ļ Director, Economic Rehabilitation Planning and Policy Division, Fiscal Policy Ofųce, Ministry of Finance Year of appointed to be a director Ļ 2008 Other Position Ļ Director General, Fiscal Policy Ofųce, Ministry of Finance Board of Director meeting attendance Ļ Director, Board of Aeronautical Radio of Thailand Ļ 14/14 Ļ Director, Board of PTT Public Company Limited Ļ Director, Board of Metropolitan Electricity Authority Number of shareholding* Ļ None Year of appointed to be a director Ļ 2011 Relationship among other management Ļ None Board of Director meeting attendance Ļ 6/14 Number of shareholding* Ļ None Relationship among other management Ļ None

Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). : Directors Proųle as of 31 December 2013 17 Company Management

Mr. Chawalit Setthmethikul Mr. Thongchai Jira-alongkorn Independent Director Director 66 years 54 years Education Education Ļ Bachelor of Laws (LL.B.) (Second Class Honors), Ļ Directors Accreditation Program Class 107 Thammasat University Thai Institute of Directors Association Ļ Barrister at Law, Institute of Legal Education, Ļ Bangkok University, School of Business Administration major Marketing Thai Bar Association Ļ Diploma from National Defence College of Thailand, Other Position Class 40 Ļ Director/ Sansiri PCL. Ļ Master of Political Science (M.Pol.Sc), Public Administration, Ļ Deputy Managing Director/The Viriyah Insurance Public Company Limited Thammasat University Ļ President/S.V.T.Property 2003 Co., Ltd.. Ļ Certiųcate from Thai Institute of Directors Association Ļ Managing Director/ Thonburi Motor Sales Co., Ltd. Ļ Directors Accreditation Program Class 6/2003 Ļ Chief Executive Ofųcer/V and G Logic Co., Ltd. Ļ Director Certiųcation Program (DCP) Class 74 Ļ Chairman/V.M.S.Car Sale Co., Ltd. Ļ Chairman/Viriyah Nakarin Co., Ltd. Experience Ļ Chairman/Viriyah Auto Sale Co., Ltd Ļ Director General of The Thai Customs Department, Ļ Chairman/V.S.T.Auto Sale Co., Ltd. Ministry of Finance Ļ Chairman/V.S.R.Auto Sale Co., Ltd Ļ Deputy Permanent Secretaries of Ministry of Finance Ļ Chairman/V.S.K.Automobile Co., Ltd. Ļ Inspector of Ministry of Finance Ļ Chairman/Viriyah Mazda 2004 Co., Ltd. Ļ Deputy Director-General : The Excise Department of Ministry Ļ Chairman/V.Group Mitsu Auto Sale Co., Ltd.a of Finance Ļ Chairman : The Board of Small Business Year of appointed to be a director Credit Guarantee Corporation Ļ 2012 Ļ Vice Chairman : The Board of Metropolitan Board of Director meeting attendance Electricity Authority Ļ 14/14 Ļ Vice Presiden t: The Board of Airports of Thailand PCL. Ļ Director : Ofųce of The council of State Number of shareholding* Ļ Director : The Thai BAR Ļ 1,137,336 shares (0.07%) Other Position Relationship among other management Ļ Chairman of the Board of Directors: Hemaraj Land Ļ None and Development PCL. Ļ President : Sriracha Harbour PCL. Year of appointed to be a director Ļ 2011 Board of Director meeting attendance Ļ 14/14 Number of shareholding* Ļ 15,000 shares (0.00%) Relationship among other management Ļ None

Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). 18 : Directors Proųle as of 31 December 2013 Company Management

Mrs. Phornsiri Manoharn Mr. Sombut Uthaisang Independent Director Independent Director 65 years 77 years Education Education Ļ Bachelor of Arts, Chulalongkorn University Ļ Certiųcate from Thai Institute of Directors Association Ļ Certiųcate from Thai Institute of Directors Association Ļ Role of Chairman - Directors Certiųcation Program (DCP) Ļ Audit Committee - Financial Statements for Directors (FSD) Ļ Director Accreditation - Audit Committee Program (ACP) Ļ Diploma in the Joint State - Private Sector Course Class/ Ļ State Enterprise Administration Programme, Thailand National Defense College the Sasin Graduate Institute of Business Administration Ļ Master of Business Administration/National Institute of of Chulalongkorn University/Kellogg Development Administration Ļ Advanced Executive Course I, the Ofųce of Ļ Bachelor of Laws/Thammasat University the Civil Service Commission Ļ Executive Relationship Development Course Class I, Experience the Directorate of Civil Affairs Royal Thai Army Political positions Ļ Deputy Minister of Interior Experience Ļ Deputy Minister of Transportation and Communications Ļ Chairman, Board of Directors, Paciųc Asia Travel Ļ Advisor to Minister of Information Communications and Technology Association (PATA) Civil Servant positions Ļ Governor, Tourism Authority of Thailand (TAT) Ļ Deputy Permanent Secretary of Ministry of Transportation Ļ President, Thailand Incentive and Convention and Communications Association (TICA) Ļ Director General of Meteorological Department Ļ Advisor to the Board of Directors, of Thailand Convention Ļ Director General of Post and Telegraph Department and Exhibition Bureau (TCEB) Other Position Other Position Ļ Chairman, Samart Corporation PCL. Ļ Advisor to the Board of Directors, Tourism Authority Ļ Chairman of Audit Committee, Thonburi Medical Centre PCL. of Thailand (TAT) Ļ Member, Civil Aviation Board of Directors Year of appointed to be a director Ļ Board Member, The zoological park organization Ļ 2013 Ļ Board Member, The botanical garden organization Board of Director meeting attendance Ļ Director, MCOT PCL. Ļ 0/0*** Ļ Vice Chairman, N. C. C. Management & Development Co., Ltd. Ļ Independent Director, Grande Asset Hotels and Property PCL. Number of shareholding* Ļ Director, Paciųc Leisure (Thailand) Co., Ltd. Ļ 15,000 shares (0.00%) Relationship among other management Year of appointed to be a director Ļ None Ļ 2013 Board of Director meeting attendance *** : Director had been appointed by the Company board of Ļ 8/9** directors meeting no. 12/2013, to replace the director who Number of shareholding* resigned Ļ None Relationship among other management Ļ None

Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). : Directors Proųle as of 31 December 2013 : ** Director had been appointed by the AGM 2013 dated April 18, 2013 and attened ųrst of Director meeting No 4/201319 Other Position Company Management Ļ Director, Thai Listed Companies Association Ļ Director, Bangkok Hospital Pattaya Co., Ltd. Ļ Director, Bangkok Hospital Phuket Co., Ltd. Ļ Director, Bangkok Hospital Udon Co., Ltd. Ļ Director, Samitivej PCL. Ļ Director, Prasit Patana PCL. Ļ Director, Phyathai 1 Hospital Ļ Director, Phyathai 2 Hospital Mrs. Narumol Noi-am Ļ Director, Phyathai 3 Hospital Chief Financial Officer Ļ Director, Phyathai Sriracha Hospital 56 years Ļ Director, Paolo Memorial Hospital Phaholyothin Ļ Director, Paolo Memorial Hospital Samutprakarn Education Ļ MBA Banking and Finance, Ļ Director, Paolo Memorial Hospital Chokchai 4 from North Texas State University, USA Ļ Director, Paolo Memorial Hospital Nawamin Ļ Bachelor of Economics (second class honors) Faculty of Ļ Director, Bangkok Hospital Chiangmai Co., Ltd. Economics from Chulalongkorn University, Thailand Ļ Director, Bangkok Hospital Khao YaiCo., Ltd. Ļ Leader Program Capital Market Academy Class 15 by Capital Ļ Director, Bangkok Hospital Khon Kaen Co., Ltd. Market Academy (CMA) The Stock Exchange of Thailand Ļ Director, Bangkok Hospital Surathani Co., Ltd. Ļ TLCA Leadership Development Program “Enhancing Ļ Director, Angkor Pisith Co., Ltd. Competitivenessķ by Thai Listed Companies Association & IMD Ļ Director, Phnom Penh Medical Services Co., Ltd. Ļ Advanced Certiųcate Course in Politics and Governance in Ļ Chairman, BDMS Accounting Co., Ltd. Democratic Systems for Executives, class 13 by Ļ Director, National Healthcare System Co.,Ltd. King Prajadhipok’s Institute Ļ Director, Greenline Synergy Co., Ltd. Ļ Successful Formulation & Execution of Strategy Ļ Director, Bangkok Helicopter Services Co., Ltd. Class 6/2010 by Thai Institute of Directors Association Number of shareholding* Ļ Directors Certiųcation Program Class 107 by Thai Institute Ļ 300,000 shares (0.02%) of Directors Association Relationship among other management Ļ Financial Executive Development Program Class 12 by Ļ None The Thai Institute of Banking and Finance for Executives from Financial Institutions Ļ Applied International Management Program, Sweden by Government of Sweden Experience Ļ Senior Vice President, Investment Banking Department TMB Bank Public Company Limited Ļ Senior Vice President, Finance Department Industrial Finance Corporation of Thailand Mr. Trin Charumilind Chief of Doctor 63 years Education Ļ Diplomat American Board of Allergy and Immunology/The United States Ļ Diplomat American Board of Pediatrics/The United States Ļ Faculty of Medicine Siriraj Hospital/Mahidol University, Thailand Experience Ļ Chief Medical Ofųcer, Bangkok Hospital Medical Center Ļ Director of Bangkok Allergy and Asthma Center Number of shareholding* Ļ None Relationship among other management Ļ None Noted : * Outstanding shares held as of 23th January 2014 includes spouses and dependents (if any). 20 : Directors Proųle as of 31 December 2013 We have dedicated our medical staff in every single unit of our hospital to deliver the best treatment to each patient. With our professional teamwork and corporation, we aim to provide good health to every patient. Good professional teamwork to promote the patients satisfaction at all times. Company Overview Company Overview

Bangkok Dusit Medical Services Public Company Limited (“Company”) was registered on 30th October 1969 under the name “Bangkok Dusit Medical Services Company Limited” with an initial registered capital of Baht 10 million. On 26th February 1972, Bangkok Hospital commenced operations in providing medical services. The Company was later listed on the Stock Exchange of Thailand on 2nd October 1991 and registered its conversion to public company limited in 1994. Presently, the Company has a registered capital of Baht 1,700.00 million, with paid-up capital of Baht 1,549.09 million.

Presently, the Company is the large private hospital operator in Thailand operaing 31 network hospitals through out the country and Combodia. The Company operates under 6 hospital groups, namely, Bangkok Hospital Group, Samitivej Hospital Group, BNH Hospital, Phyathai Hospital Group, Paolo Memorial Hospital Group and Royal Hospital Group. In addition, the Company’s network includes complementary non- hospital business such as medical laboratories, pharmaceutical product manufacturer and saline production.

Vision, Mission and Guidelines Vision Bangkok Hospital is a premier tertiary healthcare provider, dedicated to international quality and customer focused care.

Mission We are committed to being the leader in providing internationally accepted, efųcient and ethical high quality care through a dedicated healthcare team, effective leadership and up to date technology.

In order to meet the aforementioned vision, the Company has set the following guidelines:

22 Company Overview

Hospitals Ļ Super Tertiary care : Set structure, processes and high level success, which are comparable to tertiary organizations with world class excellence Ļ High Standards : Continue to improve standard of medical care, service, efųciency and environmental conservation to higher level Ļ International Quality : Cooperation with world renowned medical organizations to achieve international standard

Customers Ļ Trustworthy : Provide medical care that focuses on quality and safety at reasonable and transparent prices Ļ Satisfaction : Provide excellent services which can be evaluated for further continuous improvement

Major Changes and Developments 2011 Ļ In 2011, the Company invested in 103,827,600 common shares of Bumrungrad Hospital Public Company Limited (“BH”), equal to 14.22% of outstanding shares sold of BH. Ļ The Extraordinary Shareholders’ Meeting 1/2011 on 24th February 2011 approved the merger of the Company and Health Network Public Company Limited (Phyathai Hospital Group and Paolo Hospital Group) through an Entire Business Transfer of Health Network Public Company Limited, which is majority held by Mr. Wichai Tongtang and family. The Company paid a total of Baht 9,825,357,789 for the merger, comprised of newly issued common shares of the Company in the amount of no more than 230,870,405 shares at Baht 37.75 per share, equal to no more than Baht 8,715,357,789 and cash of approximately Baht 680,000,000, as well as transfer of loans and interest incurred from Health Network in the amount of no more than Baht 430,000,000. The Meeting also approved the tender offer for all shares of Prasit Pattana Public Company Limited. Ļ The Company registered additional capital of Baht 1,481,034,024 on 1st April 2011 to pay for the entire business transfer of Health Network Public Company Limited. This increased the Company’s holding in Prasit Pattana Public Company Limited (Phyathai Hospital Group: Phyathai Hospital 1-3 and Phyathai Hospital Sriracha) from 19.47% to 68.64%. In addition, the Company now holds shares of 4 companies within the Paolo Memorial Hospital Group, namely, 100% of Paolo Medic Company Limited (Paolo Memorial Hospital Phaholyotin), 88.73% of Paolo Samutrprakarn Company Limited (Paolo Memorial Hospital Samutrprakarn), 80.72% of Siam Medical Company Limited (Paolo Memorial Hospital Chokchai 4) and 99.76% of Thai Medical Center Public Company Limited (Paolo Memorial Hospital Nawamintr). Consequently, after the mergers, the Company now has 27 hospitals in the Group, from 19 (25 hospitals in Thailand and 2 hospitals in Cambodia), with a total of 4,987 beds, up from 3,193 beds. 23 Company Overview

Ļ The Company made a tender offer on Prasit Pattana Public Company Limited (“PYT”) between 8th April to 23rd May 2011. Payment was offered in two alternative methods which are, Baht 3.71 cash per share or common shares of the Company (“BGH”) at 10.1706 PYT shares for 1 BGH share. The respondents must choose either option. After the tender offer, the Company held 97.10% of PYT outstanding shares, up from 68.64%. The Company issued 64,366,277 rights shares to respondents who chose to receive BGH shares, resulting in Baht 1,545,400,481 of paid-up capital from Baht 1,481,034,024. Ļ The Company increased paid-up capital by another Baht 58,402 to accommodate the conversion of the convertible bonds to common shares of the Company, resulting in a paid-up capital of Baht 1,545,458,883. The convertible bonds matured in July 2011, therefore, the Company no longer has any convertible bond obligations. Ļ The Company invested in an additional 1,577,000 common shares of Udon Pattana (1994) Company Limited (Ake Udon Hospital) equal to 5.26%, resulting in 4,577,000 shares or 15.26% of shares outstanding, up from 3,000,000 shares or 10%. If including ownership of Udon Pattana shares through Prasit Pattana Public Company Limited, a subsidiary company, the Company holds 25.09% of shares outstanding of Ake Udon Hospital. Ļ The Company set up a subsidiary, “Bangkok Premier Life Insurance Broker Company Limited” with registered and paid-up capital of Baht 4 million (Baht 10 par value). Presently, the subsidiary has registered and paid-up capital of Baht 20 million. Ļ The Company ofųcially commenced operations of Bangkok Hospital Hua Hin in Prachuabkirikhan Province on 6th April 2011. The hospital has 60 beds and is the 27th hospital in the Bangkok Hospital network. Ļ Bangkok Hospital Ratchasima Company Limited, a subsidiary of the Company, opened the “Bangkok Hospital Pakchong”, a 30 bed hospital in Pakchong District, Nakornratchasima Province, making it the 28th hospital in Thailand for the Bangkok Hospital network.

2012 Ļ The Company invested in an additional 70,522,600 common shares of Bumrungrad Hospital Public Company Limited equal to 9.66% of registered and paid-up capital. Consequently, the Company now holds 174,350,200 shares or 23.88% of registered and paid-up capital of Bumrungrad Hospital Public Company Limited.

24 Company Overview 25 ciency ų dence of the patients. ų exibility in raising capital for the business. exibility in raising capital Ŵ ciency of care and con ų cially commenced business as Bangkok Hospital Udon on 12th December cially commenced business as Bangkok ų The Bangkok Hospital network is visionary in introducing technological innovation, the decrease of the Shareholders in 2012 approved The Annual General Meeting The Company made a tender offer for all outstanding shares of Prasit Pattana The Company made a tender offer Company established a new 100% owned subsidiary under Bangkok Hospital The Company established a new 100% owned subsidiary under Bangkok Hospital The 2012, making it the 29th hospital in the Bangkok Hospital Group. 2012, making it the 29th hospital in Ļ Presence System from U.S.A., to increase ef namely ROBO Doctor or Remote physicians so that of patient care. Patients have close and fast access to specialist are people in remote areas can be treated by specialists. The specialist physicians able to interact face-to-face with patients and exchange information, which strengthens ef Ļ from Baht 1,553,391,408. in the amount of Baht 7,932,525 of registered capital Meeting also capital of Baht 1,545,458,883. The This resulted in new registered mandate in the amount registered capital by way of a general approved increase in in new registered capital of from Baht 1,545,458,883, resulting of Baht 154,545,888 for Baht 1,700,004,771 Ļ order to delist shares of PYT from the Stock Public Company Limited (“PYT”) in the delisting of PYT was completed on 4th Exchange of Thailand. Consequently, May 2012. Ļ a 200-bed hospital in Muang District, Chiangmai Company Limited to construct capital of Baht 1,000 million. The hospital is Chiangmai Province with registered expected to open for business in 2014. Ļ a 120-bed private hospital on Thongyai Road Udon Company Limited to operate with registered and paid-up capital of in Muang District, Udonthani Province from Udon Panyavej Hospital Baht 500 million. The subsidiary bought the business and of Company Overview 26 openwithin2014. underthename,Bangkok Hospital KhonKhaen.Thenewhospitalisexpectedto Khon KhaenProvinceandisrenovating thebuildinginordertoopenanewhospital million.TheCompanyboughttheVechprasit HospitalbuildinginMuangDistrict, KhonKhaenCompanyLimitedwitharegisteredandpaid-up capitalofBaht600 Ļ andIntermediateCare,isexpectedtostartoperating in2014. Thehospitalwillprovideselectedtertiarycareservices andAdvancedEmergency building intoanewprivate hospitalunderthename“BangkokHospitalChinatown”. LoanFundforaperiodof30years.Thiswasthe renovation ofthelandand of1-0-99raiincludinga12,000sq.m.buildingwiththe BestFortunePropertyand Ļ 2013 entrapment, loosescrewsorlossofbackmusclethatoccurafterconventionalsurgery. alongthebackmuscles,whichmayhelplessenchronicpain,mediannerve SpondylolisthesisorScoliosisinelderlypatientswithouthavingtomakeincisions pressing onthenerves.Moreover,techniquecaneffectively treat InterbodyFusion(DLIF).Thesurgerytreatsbackandlegpaincausedbythespine surgical techniquedevelopedinThailandtotreatbackpainthroughDirectLateral includeaftercareofsportsinjuriesandrehabilitationwithfocusonincreasingphysical healthcare.ThegoalofBASEMistoprovideoptimalcareathletes.services strengthenourcapabilitiesandraisestandardofcaretobecometheleaderin (BASEM)withtotalinvestmentofover70million.Theprogramwasinitiatedto Ļ areawiththesamelevelofserviceasreceivedatBangkokHeartHospital. tomeettheinternationalstandards(JCI)andprovideheartpatientsinThonburi Ļ Ļ suchhonor. ASEANregionandthirdinAsia(Japan,Qatar,ThailandSaudiArabia)toreceive state-of-the-arttechnologyandateamofspecialistsinall thehearthospitalprovidescompleteserviceinhealthcareanddiseasewith hospitalsthatmeetinternationalstandardsandtheuseofOff-PumpCABG.Moreover, expandclientbaseinThonburiarea.ReiteratingtheGroup’sleadershipheart HeartCenterbyBangkokHospitalwithabudgetofoverBaht100millionto Jiri Dvorak,M.D.,FIFA ChiefMedicalOf Mahidol UniversityreceivedtheFIFA MedicalCentreofexcellenceCerti Ļ

The Companyhassetupanew100%ownedsubsidiarynamed,BangkokHospital The Companyregisteredthelongterm landleaseholdonYaowarat Roadwitharea ų The PhyathaiHospitalGroupandtheBangkokopen3 The BangkokSpineAcademy,Hospitalannouncedthesuccessofanew Bangkok HospitalopenedtheAcademyofSportsandExerciseMedicine Bangkok HospitalMedicalCenterandtheCollegeofSportsScienceTechnology, tness andsporttechniquesforthegreatestef ų cer. We arethe ų ciency oftheathletes. ų rst inThailandandthe ų elds ofheartdisease ų cate from Company Overview

Ļ The 2013 Annual General Meeting of the Shareholders on 18th April 2013 resolved to approve to extend the allocation of newly issued shares n under the General Mandate of no more than 154,545,888 shares at par value of Baht 1. The new shares are to be issued by the next Annual General Meeting of the Shareholders or within the date at which the law requires the next annual general meeting of the shareholders to be held , whichever comes ųrst. Ļ The 2013 Annual General Meeting of the Shareholders on 18th April 2013 resolved to approve the purchase of shares of The Medic Pharma Company Limited from the existing shareholders. The Medic Pharma Company Limited was originally an associated company in which the company held 49% ownership. After the company purchased additional shares, the company’s shareholding in the Medic Pharma Company Limited increased from 1,050,000 shares or 49% to 1,862,000 shares or 86.89% of the registered and paid-up capital. Ļ The Royal Bangkok Healthcare Company Limited (RBH), a 100% owned subsidiary, purchased shares of Krungthon Hospital (KDH) from some of the existing shareholders equal to 24.94% of the outstanding shares at Baht 55 per share. When combined with the existing KDH shares already held by the Company equal to 3,002,029 shares or 20%, RBH had to make a tender offer for all shares of KDH at the same price. After the tender offer, RBH held a total of 3,750,859 shares of KDH or 25.01%. This resulted in the ownership of 45.02% of KDH by the Bangkok Hospital Group. Consequently, Krungthon Hospital Public Company Limited registered its name change to “Thonburi Medical Center Public Company Limited” (Trading Name: KDH) and changed the name of the hospital to Samitivej Hospital Thonburi, making it the 30th hospital in the Bangkok Hospital Network. Ļ Later, at the KDH Extraordinary Shareholders’ Meeting 1/2013 on 31st October 2013, the meeting approved the increase in registered capital of another Baht 75 million, resulting in registered capital increasing from Baht 150 million to Baht 225 million. The rights offering of 7.5 million shares at Baht 80 per share at 2:1, existing shares to new shares, garnered interest for only 4.384 million shares. While the Bangkok Hospital Group exercised its entire right to the new shares resulting in the increase of the Group’s holding to 55.3% of the registered and paid-up capital after the rights offering (Baht 193.84 million). Ļ The Company set up a new wholly owned subsidiary named Bangkok Hospital Phitsanulok Company Limited with a registered and paid-up capital of Baht 600 million. On 1st October 2013, Phitsanulok Hospital purchased and took over the business of Rattanavej Hospital Company Limited, a private hospital in Muang District, Phitsanulok Province. The takeover was priced at Baht 576 million and the hospital reopened under the name “Bangkok Hospital Phitsanulok”, making it the 31st hospital in the Bangkok Hospital Network. In addition, the company issued a rights offering under the general mandate for 3,636,771 shares to the existing shareholders of Rattanavej Hospital Company Limited through a private placement at Baht 127.22 per share totaling Baht 463 million. This increased the registered and paid-up capital from Baht 1,545,458,883 to Baht 1,549,095,654. 27 Company Overview

Ļ The Company set up a new wholly owned subsidiary named Samitivej Chonburi Company Limited with a registered capital of Baht 600 million to operate a private hospital under the name “Samitivej Hospital Chonburi” in Muang District, Chonburi Province. Ļ The Company set up a new wholly owned subsidiary named Bangkok Hospital Surat Company Limited with a registered capital of Baht 300 million to operate a private hospital under the name “Bangkok Hospital Surat” in Muang District, Surat Thani Province. Ļ Bangkok Hospital Phuket Company Limited, a subsidiary in which the Company holds 99.69%, invested in the construction of a second hospital under the name “Deebuk Hospital” with total investment of approximately Baht 627 million and is expected to open within 2014. Ļ The Company has set up two holding companies in Singapore. The ųrst holding company is BDMS Inter Pte. Ltd. with a registered capital of USD 40,000 and was set up for the Groups overseas investments. The second holding company is N Health Asia Pte. Ltd. with a registered capital of USD 40,000 and was set up for investments of the Group in offshore labs.

Furthermore, the Board of Directors resolved to set up four new subsidiaries for the investment in hospitals in the Lao People's Democratic Republic as well as investments in medical laboratories and equipment in the ASEAN region. The subsidiaries were set up through the holding company in Singapore and are as follows: 1. A subsidiary in the Lao People's Democratic Republic to invest in the construction of a hospital in Luang Prabang with a registered capital of about Baht 10 million and 100% owned by BDMS Inter Pte. Ltd. (Singapore). 2. N Health Myanmar Co., Ltd. with registered capital of USD 500,000 and 60% owned by N Health Asia Pte. Ltd. (Singapore). 3. N Health Laos Co., Ltd. with registered capital of USD 200,000 and 70% owned by with N Health Asia Pte. Ltd. (Singapore). 4. N Health Cambodia Co., Ltd. with registered capital of USD 320,000 and 100% owned by with N Health Asia Pte. Ltd. (Singapore).

Services and Quality At the end of 2013, the Company had a total of 19 hospitals in the Group which received the Hospital Accreditation Thailand (HA) and a total of 12 hospitals and 1 clinic with accreditation from the Joint Commission International (JCI). The hospitals and clinics that received the accreditations are the Bangkok Hospital Medical Center, which is comprised of Bangkok Hospital, Bangkok Heart Hospital and Wattanosoth Hospital; Bangkok Hospital Pattaya; Bangkok Hospital Phuket; Bangkok Hospital Phrapadaeng; Bangkok Hospital Samui; Bangkok Hospital Hua Hin; Samitivej Hospital Sukhumvit; Samitivej Hospital Srinakarin; Samitivej Hospital Sriracha; BNH Hospital and International Clinic Koh Chang. 28 Nature of Business

Nature of Business

The Company’s main business is the private hospital business operated by the Company and the Subsidiaries. In addition, the Company has invested in businesses that support the hospital business, which can be summarized according to the ųnancial statements as follows: Income Structure of the Company and Subsidiaries During 2011 - 2013 (Unit : Million Baht) 2013 2012 2011 Type of Operated by % of revenue Holding Revenue % Revenue % Revenue % Patient revenue Bangkok Dusit Medical Services PLC. 100.0 10,871.9 22.1 9,909.3 22.4 8,218.7 23.3 Samitivej PLC. (SVH) 95.8 8,265.2 16.8 7,580.7 17.1 6,687.7 19.0 BNH Medical Center Co., Ltd. 91.5 2,112.8 4.3 1,869.9 4.2 1,579.7 4.5 Prasit Patana PLC. (PPCL) 98.4 9,329.3 19.0 8,714.1 19.7 5,632.8 16.0 Paolo Medic Co., Ltd. 100.0 2,211.1 4.5 1,979.3 4.5 1,339.0 3.8 Siam Medical Co., Ltd. 85.7 811.2 1.6 712.7 1.6 480.8 1.4 Thai Medical Center PLC. 99.8 809.4 1.6 675.3 1.5 420.3 1.2 Paolo Samut Prakran Co., Ltd. 93.5 1,179.0 2.4 1,087.3 2.5 720.3 2.0 Bangkok Hosital Prapradaeng Co., Ltd. 84.0 265.7 0.5 240.2 0.5 202.9 0.6 Bangkok Hospital Pattaya Co., Ltd. 97.3 3,347.3 6.8 3,167.5 7.1 2,793.1 7.9 Bangkok Hospital Rayong Co., Ltd. 100.0 1,742.4 3.5 1,575.9 3.6 1,359.9 3.9 Bangkok Hospital Trad Co., Ltd. 99.8 329.2 0.7 321.3 0.7 299.4 0.8 Wattanavej Co., Ltd. 99.7 928.7 1.9 852.3 1.9 717.0 2.0 Bangkok Hospital Had Yai Co., Ltd. 98.8 1,316.0 2.7 1,110.0 2.5 944.8 2.7 Bangkok Hospital Samui Co., Ltd. 100.0 634.8 1.3 545.9 1.2 459.4 1.3 Bangkok Hospital Phuket Co., Ltd. 99.7 2,473.3 5.0 2,319.1 5.2 2,065.8 5.9 Bangkok Hospital Ratchasima Co., Ltd. 90.9 1,282.4 2.6 1,113.2 2.5 925.6 2.6 Bangkok Hospital Udon Co., Ltd. 100.0 330.3 0.7 73.6 0.2 Bangkok Hospital Phitsanulok Co., Ltd. 100.0 107.9 0.2 Thonburi Medical Centre PCL 55.4 244.4 0.5 Angkor Pisith Co.. Ltd. 80.0 116.4 0.2 112.8 0.3 95.5 0.3 Rattanak Medical Services Co., Ltd. 70.0 185.1 0.4 176.0 0.4 155.8 0.4 Total 48,893.9 99.4 44,136.4 99.6 35,098.4 99.6 29 Nature of Business 30 1. ProductsandServices revenue Type of Bangkok HospitalGroup Other revenuewhichrelatedtopatient No. 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Total revenuefromhospitaloperations Bagnkok HospitalHadYai Bangkok HospitalPhuket Bangkok HospitalSamui Bangkok HospitalPhitsanulok Bangkok HospitalUdon Bangkok HospitalPakchong Bangkok HospitalRatchasima Bagnkok HospitalTrad Bangkok HospitalChantaburi Bangkok HospitalRayong Bangkok HospitalPattaya Bangkok HospitalPrapradang Bangkok HospitalHuahin Wattanosoth CancerHospital Bangkok HeartHospital Bangkok Hospital Total Bio-Molecular Laboratories(Thailand)Co.,Ltd. National HealthcareSystemsCo.,Ltd. optlOperatedBy Hospital Operated by Bangkok HospitalHadYai Co.,Ltd. Bangkok HospitalPhuketCo.,Ltd. Bangkok HospitalSamuiCo.,Ltd. Bangkok HospitalPhitsanulokCo.,Ltd. Bangkok HospitalUdonCo.,Ltd. Bangkok HospitalRatchasimaCo.,Ltd. Bangkok HospitalRatchasimaCo.,Ltd. BangkokHospital Trad Co.,Ltd. Wattanavej Co.,Ltd. Bangkok HospitalRayongCo.,Ltd Bangkok HospitalPattayaCo.,Ltd Bangkok HospitalPrapradangCo.,Ltd. Bangkok DusitMedicalServicesPLC. Bangkok DusitMedicalServicesPLC. Bangkok DusitMedicalServicesPLC. Bangkok DusitMedicalServicesPLC. Holding % of 95.0 74.0 } 49,169.9 eeu % Revenue 276.0 276.0 0.0 2013

100.0 0.6 0.0 0.6 44,307.3 eeu % Revenue 170.90 168.9 ofbeds Number 2012 2.0 165 317 158 120 300 114 170 220 400 343 50 30 60 60 48 97 100.0 0.39 0.0 0.4 number of beds 2,652 Total 35,224.5 eeu % Revenue 126.10 (Unit :MillionBaht) 121.1 2011 5.0 Holding 100.0% 100.0% 100.0% 100.0% % of 98.8% 99.7% 90.9% 90.9% 99.8% 99.7% 97.3% 84.0% 100.0 0.4 0.0 0.3

Nature of Business aa 31 93.5% 85.7% 99.8% 25.1% 38.2% 23.9% 95.8% 55.3% 69.8% 80.0% 70.0% 99.2% 98.2% 74.1% 95.8% 91.5% 100.0% 100.0% % of Holding 51 51 975 144 697 Total 1,097 1,188 of beds number 21 30 350 300 538 275 400 150 150 144 350 260 230 257 237 200 120 140 5,616 Number of beds Samitivej Plc. (SVH) Samitivej Plc. (SVH) Thonburi Medical Centre PCL (BDMS held 26.3% and held via Royal bangkok Healthcare Co., Ltd. 29.0%) Samitivej Sriracha Co., Ltd. (SVH hold 69.8%) BNH Medical Center Co., Ltd. Angkor Pisith Co., Ltd. Rattanak Medical Services Co., Ltd. Phyathai 1 Hospital Co., Ltd. Phyathai 2 Hospital Co., Ltd. Phyathai 3 Hospital Co., Ltd. Sriracha Nakorn General Hospital PCL. Paolo Medic Co., Ltd. Paolo Samutprakran Co., Ltd. Siam Medical Co., Ltd. Thai Medical Center PCL. Udon Pattana (1994) Co., Ltd. (held by the company at 15.3% and indirectly held by PPCL 9.8%) Ramkamhaeng Hospital PCL. Bumrungrad Hospital PCL. Shares held through Prasit Patana Plc., which is a subsidiary in which the Company holds 98.43% Shares held through Prasit Patana Plc., which

Hospital Operated By Ramkamhaeng Hospital Bumrungrad Hospital Samitivej Hospital (Sriracha) BNH Hospital Royal Angkor Pisith Royal Rattanak Hospital Phyathai 1 Hospital Phyathai 2 Hospital Phyathai 3 Hospital Phyathai Sriracha Hospital Paolo Memorial Hospital Phaholyothin Paolo Memorial Hospital Samutprakarn Paolo Memorial Hospital Chokchai 4 Paolo Memorial Hospital Nawamin BDMS patient beds number of Total Aek Udon International Hospital Samitivej Hospital (Sukumvith) Samitivej Hospital (Srinakarin) Samitivej Thonburi 33 34 32 20 21 22 23 24 25 26 27 28 29 30 31 17 18 19 No. Samitivej Group Group of invested Hospitals (Company has not manage) Paolo Memorail Hospital Group Phyathai Hospital Group Royal Hospital Group Nature of Business

2. Businesses Related to Medical Services Nature of Business Operated By % of holding 1. Manufacture saline and A.N.B. Laboratory Co., Ltd. 100.0 medical equipment (Held through Royal Bangkok Healthcare Co., Ltd., which is the company subsidiary wholly own) a The Medic Pharma Co., Ltd. 86.9 2. Medical Lab and Share Services National Healthcare Systems Co., Ltd. (Company held 100.0 (central purchase and accounting) directly 74% and held through subsidiary 24.9%) 3. Bio Molecular Lab Bio-Molecular Laboratories (Thailand) Co., Ltd. 95.0 4. Information and technology for company Greenline Synergy Co., Ltd. and the Subsidiaries Share service 100.0 5. Medical evacuation Bangkok Helicopter Services Co., Ltd. 49.0

6. Marketing and promotion support Cool & Joy Co., Ltd. 30.0 company and the subsidiaries 7. Catering and general support Irving Sheridan SE Co., Ltd. 95.0 for company and the subsidiaries (Held through Samitivej PLC, which is the company subsidiary ) First Health Food Co., Ltd. 100.0 a (Held through Samitivej PLC, which is the company subsidiary ) a Sodexo Healthcare Support Service (Thailand) Co., Ltd. 74.0 a (Held through First Health Food Co., Ltd. , which is the Samitivej PLC.'s subsidiary ) 8. Land holding company in Cambodia S.R. Property Investment Co., Ltd. 49.0 Siem Reap Land Investment Co., Ltd. 49.0 a Phnom Penh First Property Co., Ltd 49.0 9. Healthcare business (Holding Company) Royal Bangkok Healthcare Co., Ltd. 100.0 BDMS Inter Pte. Ltd. (Singapore) 100.0 a N Health Asia Pte. Ltd. (Singapore) 100.0 10 Training BDMS Training Co., Ltd. 100.0

11 Health insurance Bangkok Health Insurance Co., Ltd. 100.0 a Bangkok Premier Life Insurance Co., Ltd. 100.0 12 Accounting services BDMS Accounting Co., Ltd. 100.0

32 Nature of Business

2. Market Outlook and Competition (a) Marketing Strategy The Bangkok Hospital Network has determined the marketing policy with the aim to bring medical services to all groups of people by building both primary care and secondary care hospitals so that customers may access medical services that meet international standards. The goal is to become one of the top three hospitals in Thailand with focus on our strategy as an Excellence Center in terms of medical services. We will emphasize the treatment of brain disease, heart disease and cancer with the cooperation of leading institutes such as MD Anderson in the treatment of lymphoma by stem cell transplant or the Mayo Clinic in treating heart disease, to attract patients. The Company shall abide by the 4 principles, namely, Good Doctor, Good Nurse, Good Service Thai Service and Good Technology. In addition, the Company has strategies in supporting operations as follows: 1. Efųciently manage all companies within the network, efųciently manage costs, as well as readiness to service foreign patients. 2. Emphasize accessibility to target market by building relationships through direct marketing channels, especially insurance companies both domestic and international. 3. Create a strong brand for the entire hospital network. The assembling of all hospitals within the network both in Bangkok and up-country, as well as in neighboring countries, has enabled the Bangkok Hospital Network to raise the level of service to a universal medical center that has expertise in a variety of medical specialties.

In 2013, Bangkok Hospital has aimed to develop our service excellence in health care and medical services, as well as to become the complete center for expertise in all aspects of health and medicine, such as - Opening specialized centers and clinics to focus on providing medical care that meets the target patients such as the Bangkok Mental Health Rehabilitation and Recovery Center (BMRC) to care for mental patients and substance abuse rehabilitation; the Bangkok Longevity Center for elder care, currently the number of elders has increased in Thailand; the Bangkok Brain (Neuro) Center has opened clinics for headaches and Epilepsy; and the Bangkok Heart Hospital which specializesin treating cardiac arrhythmia and CABG surgery technique. - Opening the Bangkok Emergency Services (BES) to increase efųciency of patient transfers so that emergency patients may life threatening situations more quickly, this is achieved with the cooperation of various public hospitals and a network of 13 private hospitals to transfer patients in Bangkok and vicinity, as well as supporting the government’s “7 days of Danger” Project by preparing SKY ICU to transport emergency patients. - Launched the new technique in treatment by specialists at Bangkok Hospital such as Bangkok Fracture Center revealed a new technique in treating broken bones with Minimally Invasive Plate Osteosynthesis (MIPO) which is less likely 33 Nature of Business

to cause bleeding and has a faster recovery; the Bangkok Spine Academy, which uses Direct Lateral Interbody Fusion (DLIF); the Brain (Neuro) Center revealed the success in treating Parkinson’s through DBS Therapy; and the Bangkok Hospital Eye Center uses Femto LASIK to correct eyesight. - Expand medical expertise to hospitals within the network as well as hospital allies such as the opening of the Heart Center at Bangkok Hospital Udon with surgeons at Bangkok Heart Hospital ready to operate in Udon, Out-Patient Transfer Project for radiology among National Health Security Ofųce (NHSO), Wattanosoth Hospital, Paolo Memorial Hospital Navamin, etc. Furthermore, we have in place a pricing strategy by increasing the efųciency of services within an appropriate price range. For the ASEAN region market, we focus on building networks with medical and health care businesses in neighboring countries such as Myanmar, Cambodia and Laos to connect the service networks to cover areas across Thailand and ASEAN countries. (b) Industry Competition The need for health care has expanded with the increase of the Gross Domestic Product (GDP) as well as the increase in the aging population. However, with the extended unstableness of the political climate in Thailand, the world economic crisis and slowdown of the Thai economy, the growth of the private medical services industry has been affected. Medical tourism has continuously grown and it is speculated that this growth is mainly from patients who can conveniently travel into the country. The most important competitors of Thailand in the region are hospitals in countries such as Singapore, Malaysia and India. Nevertheless, Thailand does have its advantages, namely, high quality of medical services, ease of accessibility by patients and affordability of medical fees and expenses. Other advantages are Thailand’s popularity as a tourist destination and the country’s infrastructure. However, the risk factors are shortage of specialists and a sufųcient number of medical personnel, especially in nursing, as well as the instability of world and Thai economic recovery. To thrive in this environment, the Bangkok Hospital network, which has the largest network of 31 network hospitals has carefully adjusted the business plan to focus on operations starting this year.

Trend of Less Government hospitals Private Tertiary hospitals Healthcare sector - such as Siriraj hospital, such as Chulalongkorn hospital Bangkok hospital group demand driven and Ramathibodi and Bumrungrad hospital Hospital etc.

Up to middle level of private hospitals such as Kasemrad hospital More and Nonthavej hospital Focus on close geographic region Focus

Service focus Resource : Analyzed by SCB EIC Get sickness fixed Keep people healthy 34 Nature of Business

Nevertheless, the Bangkok Hospital Group may enhance our potential in order to prepare for this new trend by targeting the increasing number of senior citizens in the ASEAN region. As Thailand is well known for the medical services as well as for the competency of clinical personnel and hospitals, we should be able to draw in patients from around the region. Currently, there are 28 hospitals in Thailand that have received JCI Accreditation (Joint Commission International) from the United States, the most within the ASEAN region. This demonstrates that Thai hospitals stand out in terms of medical standards, which will establish Thailand as a Medical Hub in the future. In terms of international competition for foreign patients, hospitals in Asia, especially private hospitals in Singapore, Hong Kong, Malaysia or India, all aim to attract European patients as well as patients from Asian countries such as Japan, China, ASEAN and the Middle East just like Thailand. Even though Thailand may have a competitive edge by charging lower medical fees than some countries such as Singapore, but Thailand still has many weaknesses, especially in terms of clinical personnel and limited foreign language skills, which is an important strength of our competitors.

3. Product Procurement 3.1 Clinical Personnel The Company has the policy to recruit physicians that are experts in each of ųeld, as well as nurses and other clinical personnel, in order to provide quality service that covers all areas. Such recruitment is carried out for all companies within the group. The recruitment of physicians and nurses is conducted by selecting candidates from leading medical and nursing schools. Each of the physicians and nurses is then selected for employment by the Medical Committee of the respective hospital. As clinical personnel are essential to the hospital business and it is important for them to develop their knowledge and medical advancement techniques both in terms of profession and technology, the Company supports medical research, academic conferences and training for physicians and nurses. This includes training for nurses so that they have expertise in providing patient care prior to start working. Furthermore, the Company recognizes the importance of investments in medical technology and medical tools and equipment, which can indirectly attract capable and expert medical personnel to remain with the hospital for a longer period of time. Such technology and equipment also help to foster experiences and skills in medical diagnoses and treatment.

35 Nature of Business

3.2 Procurement of Medicine and Medical Supplies The Company has the policy to procure medicine and medical supplies from domestic distributors by dispersing orders to various distributors. To this end, the Company utilizes the Central Procurement System for each hospital within the network whereby Central Procurement shall collect all orders for medicine and medical supplies from the hospitals within the network and then contact and order those medicine and medical supplies with the distributors. This process of purchasing medicine and medical supplies ensures the highest efųciency in managing procurement and inventory within the group, which includes the suitability of prices, efųciency and quality of medicine and medical supplies as well. 3.3 Procurement of Medical Equipment As medical equipment and tools are important factors in providing quality and efųcient medical services to the patients, the procurement of medical equipment and tools within the Company and network hospitals is therefore delegated to the Medical Committee for the Procurement of Medical Equipment. This Medical Committee shall carefully consider the necessity and the required quality of the medical equipment and tools to suit the needs of the hospital group. In procuring medical equipment and tools, the Company shall make orders with domestic agents and enter into purchase agreements with the distributor. The agreements shall clearly state the price denominated in Thai Baht as well as the requirements on after-sale service. In addition, for hospitals within the Company’s network, to ensure that patients receive quality and efųcient service, the Company has made certain that hospitals within the network, especially those in the regional areas, are equipped with modern medical equipment. The basic medical equipment that all hospitals should have are MRI, CT Scan and Cath. Lab. Apart from being able to provide medical services to patients at the hospitals within the network, such equipment can also be of use to medical centers or clinics in the surrounding areas, as well as being able to accept patient referrals from other medical centers or clinics.

36 Bangkok Hospital Group’s staffs were served our patients with passion and care. We are committed to promote good health to Thai society; by helping the underprivileged children, promoting healthy society, and providing assistance during the emergency situation or disaster. We serve our patients as family with heart and care together state of the art equipment. Risk Factors Risk Factors

1.Risk of Economic Volatility The Thai economy was continuously slow since the second half of 2013 from the decrease in consumption and investment from the private sector, decreased domestic expenditures and slow exports. The Kasikorn Research Center (as of December 2013) expects that the Thai economy as a whole in 2013 will grow at only 2.7% from a growth of 6.5% in 2012. The expected economic growth rate in 2014 continues to be faced with many economic risks namely, Thai political instability, the postponement of infrastructure investments, price trends of goods and cost of living, and exports, which are expected to pick up as the world economy recovers. Therefore, the Thai economic forecast for 2014 is still based on assumptions that are highly uncertain. The Kasikorn Research Center believes that in the midst of the political unrest, it is highly possible that the Thai economic growth rate in 2014 will be at the lower band of the forecast, with the base case rate forecasted by Kasikorn Research Center being at 3.7%. However, if the political unrest shows signs of continuing into the second half of the year, the impact on the economy will be stronger. Even though healthcare is one of the four basic needs, the state of the economy will affect consumers purchasing power. The hospital’s customers may choose to delay or lessen healthcare needs such as delay treatment of illnesses that need not be treated immediately, lessen the number of days of recovery at the hospital, decrease healthcare expenses by choosing to go to public hospitals or other private hospitals that are less costly. Consequently, the Company is closely monitoring the situation to analyze and assess the risks that may affect the Company’s business, including making preparations and determining appropriate measures to manage those risks. The Company has the strategy to expand the hospital network to other provinces across all regions of the country which have potential and are in need of medical services as well as targeting diverse customer groups to diversify risk and lessen the impact of any situations that may occur.

38 Risk Factors 39 ciency and competitive edge, the Company ų cance to patient referral as well as hub and spoke hospital management. ų The Company operates under the supervision of the Ministry of Public Health under the supervision of the Ministry The Company operates regulations or enforcement of laws Any changes in the interpretation of current within the networks are in compliance with However, the Company and hospitals with The private hospital business is highly competitive. Apart from competition Therefore, to increase servicing ef 2. Operational Risks 2. Operational Risks governing the Company changes in standards or regulations 2.1 Risk from future the Company must have a government agencies. Furthermore, and other related as stipulated by the law a health care business and health clinics license to operate comply with laws governing In addition, the Company must governing health clinics. laws. health clinics, companies and other related likely to be stricter, may impact the Company’s or new regulations or policies that are or new regulations, as well as the deliberation operations. The enforcement of laws protects persons who have been wronged of the draft Patient Protection Act, which services with the goal to compensate the or received damages from health care to prove wrongdoing, may affect health patients in a timely manner without having There is also consideration of setting up a care providers including the Company. to patients, whereby the health care patient protection fund to pay for damages care business operator) are responsible clinics (including the Company as a health to the rules, procedures and rate determined for contributing to the fund according Therefore, the Company may not be able to by the Patient Protection Committee. and regulations or issuance of new regulations guarantee that future changes to laws business will not affect the Company’s or new policies related to the Company’s operations and business opportunities. JCI (Joint Commission International) and HA various standards of quality such as with HA requires that a Committee be (Hospital Accreditation). Compliance the established to monitor the quality of patient care and ensure that it meets various standards of safety and environmental conservation, as well as monitor the effects risks, especially risk in providing medical care. This may help to lessen the of changes to laws regarding health and the environment. 2.2 Risk of Competition private hospitals at the same level, the Company must also compete with mid level hospitals, medical services, as well as acquired which have improved and developed Public state-of-the-art medical equipment in order to expand their customer base. hospitals have also expanded medical services offered such as opening after-hours may take clinics, and private hospitals managed by large public hospitals, which away some of our patients. gives signi provide In each region, the Company has hub hospitals which have the capability to will complex treatment while the spoke hospitals are smaller than the hub hospital and provide convenience and an alternative for patients in the surrounding areas transfer patients to the hub hospital for more complex treatment. Risk Factors 40 lessen suchrisks. ensure thatthequalityofservice alwaysmeetsinternationalstandardsinorderto a complaintisreceived,aswell asimprovingqualityanddeterminingindicatorsthat managing patients’expectations,reportingprocedures and respecting patients’rights.TheCompanygivesimportance toprovidinginformation, inspecting qualityofmedicalservices,thescreening ofphysicians,aswell the Companyatriskofbeingsuedformedicalservices provided. This lawmayaffecthealthcareserviceprovidersandmedical personnel,whichputs easily enablesconsumersandpatientsto of theActonCourtProceedingsforConsumerCasesB.E. 2551(2008),whichmore 2.4 LegalRisk signi comparison withotherprivatehospitalgroups,theCompanycurrentlyhasnotbeen when comparedtootheroperatorsintheprivatehospitalbusiness.Therefore, Moreover, theCompanyhassetmeasuresindeterminingcompensationthatisfair medical knowledgeinallareasaswellstate-of-the-arttechnology. to improvespecializedskills.We areaknowledgeorganizationthataimstoenhance provide costs. attracting skilledclinicalpersonnel,whichmayaffecttheCompany’soperational The Companyhashadtocompetewithotherhospitaloperatorsinretainingand personnel andtherehavenotbeensuf clinical personnel.Greatrelianceisplaceduponthepublicsectortodevelop personnel mayhavenegativeeffectsontheCompany. personnel orcrucialexecutives,andnotbeingabletoreplacethemwithcomparable physicians, nurses,pharmacistsandtechnicians.Therefore,failuretoretainclinical 2.3 Riskinretainingclinicalpersonnelorcrucialexecutives network, providingfullcycleserviceaswelleconomyofscale. ad medicalsuppliesinordertosupporthospitalsbothwithinandoutsideofthe heath careservicessuchascompaniesthatproduceanddistributemedicine,saline technology. TheCompanyhasalsoinvestedincompaniesrelatingtoandsupporting laboratories, centralprocurement,accountingandinformation Furthermore, theCompanymanagessharedservicesofcentralmedical Nevertheless, managementrecognizestheimportance ofcontrollingand Presently, peoplearemoreawareofpatients’rights,especially withtheissuance However, theBangkokHospitalnetworkisalargeoneandhascontinuedto Presently, thehospitalbusinessinThailandisfacedwithproblemoflack The privatehospitalbusinessmustdependonskilledclinicalpersonnelsuchas ų cantly affectedbythisrisk. ų nancial supportforeducationandresearchtoclinicalpersonnelinorder ų ų cient clinicalpersonneltomeetdemand. le suitagainsthealthcareserviceproviders. ų nding solutionswhen Risk Factors 41 cally ų nancial institutions ų nancial status and performance. ų nancial risks that the Company faces, that is, ų dence in coming to Thailand for health care services, which is out of the dence in coming to Thailand for health ų Receiving payment is one of the The Company’s foreign investments include ownership of 80% of the shares of The Company’s foreign investments include ownership of 80% of the shares Therefore, the Company faces risk from various crises that will affect patients’ Therefore, the Company faces risk from with total value (in the form of The Company has made foreign investments Medical services revenue from foreign patients, which includes persons living or from foreign patients, which includes Medical services revenue when providing medical care before charging fees and expenses, there is a risk that when providing medical care before charging fees and expenses, there is a we may not be able to receive payment for such services. However, the Company has the following policies in reducing such risk: 3. Financial Risk 3.1 Risk in receiving payment of medical fees for subsidiaries) as of 31st December 2013 of USD 44.7 million which is equal to for subsidiaries) as of 31st December of the Company’s total assets. approximately Baht 1,468 million or 1.9% 70% Angkor Pisith Co., Ltd. (which manages the Royal Angkor International Hospital), the Royal of the shares of Royal Rattanak Medical Services Co., Ltd. (which manages Co., Ltd. Rattanak Hospital) and 100% of the shares of Phnom Penh Medical Services for and BDMS International Medical Services Co., Ltd., which has not yet opened business. The factors that may negatively impact the Company’s foreign investments the are for example, foreign laws, regulations or government policies which govern currency Company’s offshore business, or political and economic conditions, foreign The exchange volatility, or higher than expected cost of capital or operations. aforementioned factors may result in the Company not achieving the expected return or may impact the Company’s to receive medical care, as well as staff of foreign governments or agencies, or care, as well as staff of foreign governments to receive medical of the Company’s revenue companies, is an important part employees of foreign come to Thailand for health This group of patrons chooses to from medical services. recognized standard and quality of care services because of the internationally and Thailand’s renowned tourism industry. medical services, reasonable medical fees con politics as well as various natural disasters Company’s control, such as domestic factors will directly affect the number of and increased competition. All these this end, the for medical services. To foreign patients that will come to Thailand reduce this risk by expanding the hospital Company has a policy to diversify and country, which have potential and need of network to other provinces across the has expanded the foreign patient base medical services. In addition, the Company the risk of concentration of patients. to more diverse countries to reduce 2.6 Foreign Investment Risk and loan guarantee with paid-up capital, loans to subsidiaries 2.5 Risk of Reliance on Revenue from Foreign Patients on Revenue from Foreign Patients 2.5 Risk of Reliance for pleasure or speci or persons travelling to Thailand working in Thailand, Risk Factors 42 agenda willnotbepassedby the shareholdermeeting. by thegroupofshareholders thatholdmorethan25%,theremaybearisksuch by theCompany’sArticlesofAssociation orrelatedlawsandsuchagendaisnotsupported votes infavorofmorethanthree quarters(¾)ofthevotesatmeetingasprescribed than 25%.Therefore,inthecase thattheCompanyproposesanyagendasrequire Thus, TheCompany’sbusiness, network inthesamewaythatdomesticeconomyimpactsnumberoflocalpatients. has animpactonthenumberofforeignerswhovisithospitalswithinCompany’s to Thailand.Therefore,theeconomicstatusofcountryoriginforeignpatients 3.3 Effectsofglobaleconomyandforeigncurrencyexchangevolatility the marketsituation. rate risk,includingenteringintointerestswaps,asdeemedappropriateaccordingto the Company to 27%ofall 3.2 InterestRatesVolatility Risk Company andpatientswhenthereisdefaultofpayment. and payment ofmedicalserviceswithcautionbyanalyzingthecounterparty’scredithistory payment alongthewaytolessenburdenofone-timeatendtreatment. medical expensesoftheincurredduringcoursetreatmentandencourages and makepaymentoradepositpriortotreatment. expense beforeprovidingmedicalservicessothatthepatientwillbeawareofbudget in thecaseofnon-emergencyprocedures,Companyhaspolicytoassess determine measurestomanagetherisk,aswell management from non-payment. credit exceedsthelimit,Companywillhaltcredit,whichlessensriskof or naturalhedge. by allottingloansinUSDollarsforforeignsubsidiaries,which receivefeesinUSDollars Thai Baht suitable ratioofdomesticandforeignpatientsinorderto reduce thisrisk.In2013,the that isoutoftheCompany’scontrol.Inthiscase,Company hastriedtomaintaina thus facesriskfromthevolatilityofforeigncurrencyexchange, whichisanexternalfactor other countries,isanotherfactorthatmayaffecttheCompany’srevenue.TheCompany determining factorinsettingcompetitivepricingcomparedtohealthcareproviders impacted bytheeconomyofvariouscountriesoriginforeignpatients. 4 RisksAffecting theRightsorInvestmentsofSecuritiesHolder Currently, theCompanyhasagroupofmajorshareholders thattogetherholdmore Part oftheCompany’srevenuecomesfromservicesprovidedtoforeignerswhotravel As of31stDecember2013,theCompanyhasliabilitieswith 3. Forpaymentbycounterparties,theCompanyalsohasapolicytoprovidecreditfor 2. TheCompanyalsohasthepolicytonotifypartyresponsibleforpaymentof 1. Whenprovidingservicestopatientswhoarepersonallyresponsiblefortheexpense, The CompanyhassetuptheDebtorManagementCommitteecomprisedof The Companyhasthepolicytohedgeforeigncurrencyexchange riskofliabilities Furthermore, thevolatilityofforeigncurrencyagainstThaiBaht,whichisa ų nancial status,aswellregularlyreviewingtherelationship.Whenoutstanding Ŵ uctuated betweenBaht28.64to32.87USD. ų ų nancial liabilities.Therefore, nancial costs.However,theCompanyhaspolicytohedgeinterest ų nance andoperations.TheCommitteemeetsregularlytoreview ų nancial status,pro Ŵ uctuations oftheinterestratesmayaffect ų ts andbusinessopportunitiesmaybe ų nd appropriatesolutionsforthe Ŵ oating interestrateequal Securities and Shareholders

Securities and Shareholders

1. Registered Capital and Paid-up Capital As of 31st December 2013, the Company had a registered capital of Baht 1,700,004,771 and paid-up capital of Baht 1,549,095,654 with a total of 1,549,095,654 common shares at par value Baht 1 per share.

2. Shareholder Structure List of top 10 shareholders as of the registrar closing date 23rd January 2014

No. Shareholder’s Name Number of Shares Percentage of Shares

1. Mr. Prasert Prasarttong-Osoth, M.D. and spouse 326,275,534 21.06% Miss Poramaporn Prasarttong-Osoth, M.D. 39,970,598 2.58% Mrs. Ariya Prasarttong-Osoth 5,586,800 0.36% Mr. Puttipong Prasarttong-Osoth, M.D. and spouse 2,526,666 0.16% Mrs. Somruthai Prasarttong-Osoth 1,630,000 0.11% Total 375,989,598 24.27% 2. Mr. Wichai Thongtang and spouse 186,317,769 12.03% Mr. Itti Thongtang 12,600,000 0.81% Mr. Attikhun Thongtang 12,500,000 0.81% Miss Viorn Thongtang 12,500,000 0.81% Mr. Att Thongtang 11,857,200 0.77% Mrs. Petcharath Thongtang 898,000 0.06% Total 236,672,969 15.28% 3. Bangkok Airways PCL 1/ 104,341,869 6.74% Bangkok Airways Holding Co., Ltd. 17,000,000 1.10% Bangkok Air Catering Co., Ltd. 80,000 0.01% Total 121,421,869 7.84% 4. The Viriyah Insurance PCL 2/ 96,113,863 6.20% 5. Mr. Chirotchana Suchato, M.D.and spouse 39,408,009 2.54% Mr. Janus Suchato 400,146 0.03% Mrs. Nasuda Darnchaivijitr 939,000 0.06% Mrs. Ranitha Thongdee 1,008,493 0.07% Mr. Trongtham Thongdee 33,200 0.00% Total 41,788,848 2.70% 6. Thai NDVR Co., Ltd. 40,712,564 2.63% 43 Securities and Shareholders

No. Shareholder’s Name Number of Shares Percentage of Shares

7. Miss Noppamas Ladpli 16,986,500 1.10% Mrs. Atinuch Malakul Na Ayudhaya 13,123,302 0.85% Mr. Parameth Ladpli 8,814,835 0.57% Total 38,924,637 2.51% 8. HSBC (SINGAPORE) NOMINEES PTE LTD 37,732,455 2.44% 9. Bangkok Bank PCL. 35,207,156 2.27% 10. Mr. Chuladej Yossundharakul, M.D. and spouse 27,598,795 1.78% Mr. Chulawat Yossundharakul 645,230 0.04% Mr. Chulavej Yossundharakul 192,824 0.01% Miss Chulada Yossundharakul 500 0.00% Mrs. Marin Chansai, M.D. 469,192 0.03% Mr. Chaiya Chansai 10,000 0.00% Total 28,916,541 1.87% 1,012,767,936 65.38% Source: Thailand Securities Depository Company Limited

Remark: 1/ Bangkok Airways Public Company Limited holds 99.9% of Bangkok Airways Holding Company Limited shares and holds 90% of Bangkok Air Catering Company Limited shares. Bangkok Airways PCL. had major shareholders as follows: Name Number of Shares %

1. Miss Poramaporn Prasarttong-Osoth, M.D. 473,709,920 29.98% 2. Mr. Prasert Prasarttong-Osoth, M.D. and spouse 419,271,100 26.49% 3. Mr. Puttipong Prasarttong-Osoth 319,700,000 20.23% 1,212,681,020 76.75% 2/ The Viriyah Insurance PCL. had major shareholders as follows: Name Number of Shares %

1. Viriyah Property Co., Ltd. 6,000,010 30.00% 2. The Ancient City Co., Ltd. 2,000,000 10.00% 3. Thonburi Panich Leasing Co., Ltd. 1,999,990 10.00% 10,000,000 50.00%

44 Securities and Shareholders

3. Other Securities As of 31st December 2013, the Company had a total of 9 debentures that had not yet matured, which are registered and traded on the Thai Bond Market Association (Thai BMA), as follows: Ļ Bangkok Dusit Medical Services PCL Debenture BGH146A and BGH166A registered and traded on Thai BMA since 4th June 2009 Ļ Bangkok Dusit Medical Services PCL Debenture BGH153A registered and traded on Thai BMA since 3rd March 2011 Ļ Bangkok Dusit Medical Services PCL Debenture BGH143A registered and traded on Thai BMA since 29th March 2011 Ļ Bangkok Dusit Medical Services PCL Debenture BGH228A registered and traded on Thai BMA since 3rd August 2012 Ļ Bangkok Dusit Medical Services PCL Debenture BGH228B registered and traded on Thai BMA since 7th August 2012 Ļ Bangkok Dusit Medical Services PCL Debenture BGH233A registered and traded on Thai BMA since 14th March 2013 Ļ Bangkok Dusit Medical Services PCL Debenture BGH205A and BGH235A registered and traded on Thai BMA since 10th May 2013

Features of the nine debentures are as follows:

(1) Bangkok Dusit Medical Services PCL Debenture No. 1/2009 Series 1 Due in 2014 (BGH146A) UNSECURED BOND, UNSUBORDINATED WITH BOND HOLDERS’ Debenture Type : NAME REGISTERED AND WITH BOND HOLDERS’ REPRESENTATIVE Issue Term : 5 years from issue date Issue Value : 2,000,000,000 Baht Issue Size : 2,000,000 units Face Value : 1,000 Baht Offer Price : 1,000 Baht Issue Date : 4 June 2009 Maturity Date : 4 June 2014 Coupon Payment : 4.80% per annum to be paid every 6 months from date of issue and paid on 4th June and 4th December of every year Debenture Registrar : TMB Bank Public Company Limited Debenture Holder Representative : Kasikornbank Public Company Limited Outstanding Size as of 31st December 2013 : 1,970,000 units Outstanding Value as of 31st December 2013 : 1,970,000,000 Baht Credit Rating (Tris Rating) : A+ 45 Securities and Shareholders

(2) Bangkok Dusit Medical Services PCL Debenture No. 1/2009 Series 2 Due in 2016 (BGH166A) UNSECURED BOND, UNSUBORDINATED WITH BOND HOLDERS’ Debenture Type : NAME REGISTERED AND WITH BOND HOLDERS’ REPRESENTATIVE Issue Term : 7 years from issue date Issue Value : 1,000,000,000 Baht Issue Size : 1,000,000 Units Face Value : 1,000 Baht Offer Price : 1,000 Baht Issue Date : 4 June 2009 Maturity Date : 4 June 2016 Coupon Payment : 5.35% per annum to be paid every 6 months from date of issue and paid on 4th June and 4th December of every year Debenture Registrar : TMB Bank Public Company Limited Debenture Holder Representative : Kasikornbank Public Company Limited Outstanding Size as of 31st December 2013 : 1,000,000 Units Outstanding Value as of 31st December 2013 : 1,000,000,000 Baht Credit Rating (Tris Rating) : A+

(3) Bangkok Dusit Medical Services PCL Debenture No. 1/2011 Due in 2015 (BGH153A) UNSECURED BOND, UNSUBORDINATED WITH BOND HOLDERS’ Debenture Type : NAME REGISTERED AND WITHOUT BOND HOLDERS’ REPRESENTATIVE Issue Term : 4 years from issue date Issue Value : 2,500,000,000 Baht Issue Size : 2,500,000 Units Face Value : 1,000 Baht Offer Price : 1,000 Baht Issue Date : 3 March 2011 Maturity Date : 3 March 2015 Coupon Payment : 3.99% per annum to be paid every 6 months from date of issue and paid on 3rd March and 3rd September of every year Debenture Registrar : TMB Bank Public Company Limited Outstanding Size as of 31st December 2013 : 2,500,000 Units Outstanding Value as of 31st December 2013 : 2,500,000,000 Baht Credit Rating (Tris Rating) : A+ 46 Securities and Shareholders

(4) Bangkok Dusit Medical Services PCL Debenture No. 2/2011 Due in 2014 (BGH143A) UNSECURED BOND, UNSUBORDINATED WITH BOND HOLDERS’ Debenture Type : NAME REGISTERED AND WITHOUT BOND HOLDERS’ REPRESENTATIVE Issue Term : 3 years from issue date Issue Value : 1,000,000,000 Baht Issue Size : 1,000,000 Units Face Value : 1,000 Baht Offer Price : 1,000 Baht Issue Date : 29 March 2011 Maturity Date : 29 March 2014 Coupon Payment : 3.78% per annum to be paid every 6 months from date of issue and paid on 29th March and 29th September of every year Debenture Registrar : TMB Bank Public Company Limited Outstanding Size as of 31st December 2013 : 1,000,000 Units Outstanding Value as of 31st December 2013 : 1,000,000,000 Baht Credit Rating (Tris Rating) : A+

(5) Bangkok Dusit Medical Services PCL Debenture No. 1/2012 Due in 2022 (BGH228A) UNSUBORDINATE, UNSECURED BOND WITH BOND HOLDERS’ Debenture Type : NAME REGISTERED AND WITHOUT BOND HOLDERS’ REPRESENTATIVE Issue Term : 10 years from issue date Issue Value : 500,000,000 Baht Issue Size : 500,000 Units Face Value : 1,000 Baht Offer Price : 1,000 Baht Issue Date : 6 August 2012 Maturity Date : 6 August 2022 Coupon Payment : 4.50% per annum to be paid every 6 months from date of issue and paid on 6th February and 6th August of every year Debenture Registrar : TMB Bank Public Company Limited Outstanding Size as of 31st December 2013 : 500,000 Units Outstanding Value as of 31st December 2013 : 500,000,000 Baht Credit Rating (Tris Rating) : A+ 47 Securities and Shareholders 48 (6) BangkokDusitMedicalServicesPCLDebentureNo.2/2012Duein2022(BGH228B) Credit Rating(Tris Rating) Outstanding Valueasof31stDecember 2013 Outstanding Sizeasof31stDecember2013 Debenture Registrar Coupon Payment Maturity Date Issue Date Offer Price Face Value Issue Size Issue Value Issue Term Debenture Type Credit Rating(Tris Rating) Outstanding Valueasof31stDecember2013 Outstanding Sizeasof31stDecember2013 Debenture Registrar Coupon Payment Maturity Date Issue Date Offer Price Face Value Issue Size Issue Value Issue Term Debenture Type (7) BangkokDusitMedicalServicesPCLDebentureNo.1/2013Duein2023(BGH233A) : : : : : : : : : : : : : : : : : : : : : : : : : : A+ 4,000,000,000 Baht 4,000,000 Units TMB BankPublicCompanyLimited issue andpaidon14thMarchSeptemberofeveryyear 4.63% perannumtobepaidevery6monthsfromdateof 14 March2023 14 March2013 1,000 Baht 1,000 Baht 4,000,000 Units 4,000,000,000 Baht 10 yearsfromissuedate NAME REGISTEREDANDWITHOUTBONDHOLDERS’REPRESENTATIVE UNSUBORDINATE, UNSECUREDBONDWITHHOLDERS’ A+ 100,000,000 Baht 100,000 Units TMB BankPublicCompanyLimited issue andpaidon8thFebruaryAugustofeveryyear 4.50% perannumtobepaidevery6monthsfromdateof 8 August2022 8 August2012 1,000 Baht 1,000 Baht 100,000 Units 100,000,000 Baht 10 yearsfromissuedate NAME REGISTEREDANDWITHOUTBONDHOLDERS’REPRESENTATIVE UNSUBORDINATE, UNSECUREDBONDWITHHOLDERS’ Securities and Shareholders 49 UNSUBORDINATE, UNSECURED BOND WITH BOND HOLDERS’ UNSUBORDINATE, REPRESENTATIVE NAME REGISTERED AND WITHOUT BOND HOLDERS’ 10 years from issue date 1,000,000,000 Baht 1,000,000 Units 1,000 Baht 1,000 Baht 10 May 2013 10 May 2023 4.39% per annum to be paid every 6 months from date of issue and paid on 10th May and 10th November of every year TMB Bank Public Company Limited 1,000,000 Units 1,000,000,000 Baht A+ UNSUBORDINATE, UNSECURED BOND WITH BOND HOLDERS’ UNSECURED UNSUBORDINATE, BOND HOLDERS’ REPRESENTATIVE NAME REGISTERED AND WITHOUT 7 years from issue date 2,000,000,000 Baht 2,000,000 Units 1,000 Baht 1,000 Baht 10 May 2013 10 May 2020 from date of 4.19% per annum to be paid every 6 months of every year issue and paid on 10th May and 10th November TMB Bank Public Company Limited 2,000,000 Units 2,000,000,000 Baht A+ : : : : : : : : : : : : : : : : : : : : : : : : : : (9) Bangkok Dusit Medical Services PCL Debenture No. 2/2013 Series 2 Due in 2023 (BGH235A) (9) Bangkok Dusit Medical Services PCL (8) Bangkok Dusit Medical Services PCL Debenture No. 2/2013 Series 1 Due in 2020 (BGH205A) Series 1 Due in 2020 (BGH205A) Services PCL Debenture No. 2/2013 (8) Bangkok Dusit Medical Debenture Type Issue Term Issue Value Issue Size Face Value Offer Price Issue Date Maturity Date Coupon Payment Debenture Registrar Outstanding Size as of 31st December 2013 Outstanding Value as of 31st December 2013 Rating) Credit Rating (Tris Debenture Type Issue Term Issue Value Issue Size Face Value Offer Price Issue Date Maturity Date Coupon Payment Debenture Registrar Outstanding Size as of 31st December 2013 Outstanding Value as of 31st December 2013 Rating) Credit Rating (Tris Dividend Payment Policy Dividend Payment Policy

Dividend Payment Policy of the Company The Company has prescribed a material dividend payment policy since the Annual Shareholders’ Meeting in 2009. The Company’s policy is to pay dividends at no less than 50% of the company proųts, depending on business expansion and capital requirements of the Company in each year, as approved by the shareholders, except for dividends within accounting periods which may be approved by the Board of Directors if the Board deems that the Company has had good operating results and sufųcient liquidity. Historical dividend payment from the Company’s operations for the last 5 years can be summarized as follows: Annual Dividend Payments 2008 2009 2010 2011 2012

Earnings per share (Consolidated ųnancial statements) 1.37 1.42 1.88 3.00 5.14 Earnings per share (Company’s ųnancial statements) 0.29 0.76 0.82 1.57 1.73 Dividend per share (Baht per share) 0.60 0.70 0.80 1.10 1.80 Dividend per share/Earnings per share - Consolidated ųnancial statements 44% 49% 43% 37% 35% - Company’s ųnancial statements 207% 92% 98% 70% 104% Date of Dividend Announcement 30/04/09 19/04/10 12/01/11(1) 04/05/12 03/05/13

Note: (1) The Company announced interim dividend payment from 2010 operations in January 2011 and the 2011 Annual General Meeting of the Shareholders resolved not to pay additional dividends.

Dividend Payment Policy of the Subsidiaries In the case of subsidiaries which are not listed on the Stock Exchange of Thailand, the Company has the policy for such subsidiaries to set aside proųt as reserves prescribed by law as well as cash reserves as deemed necessary for operations of the business. Once the reserves have been allocated, the subsidiaries may then allocate the remaining proųt as dividends to shareholders.

FForor ssubsidiariesubsidiaries wwhichhich aarere llistedisted on tthehe SStocktock EExchangexchange ooff TThailand,hailand, tthehe ddividendividend ppaymentayment ppolicyolicy sshallhall bbee ddeterminedetermined by tthehe BBoardoard ooff DDirectorsirectors ooff eeachach ccompanyompany aass ddeemedeemed aappropriateppropriate aandnd aaccordingccording ttoo tthehe ppolicyolicy tthathat eeachach ssubsidiaryubsidiary hhadad aannouncednnounced ttoo iinvestors.nvestors.

50 Management Structure

Management Structure

Management Structure as of 31st December 2013

Board of Directors

Audit Committee Executive Committee Nomination and Remuneration Committee

g Corporate Secretary Compliance Unit Chief Executive Officer and President Office of the Chief Executive Officer

Chief of Doctors Chief Operating Officer - Medical Affairs Chief Operating Officer - Administrative Affairs Chief Financial Officer

51 Management Structure 52 1.Board ofDirectors on18thDecember 2013andthereforedidnot attendanyoftheBoardDirectors’ meetingsin2013. (4) AppointedasDirectorreplacing aDirectorwhohasresignedinaccordancewiththeBoardofDirectors’ resolutionatMeetin fromMeetingno.4/2013onwards. (3) Appointedatthe2013Annual Shareholders’Meetingon18thApril2013andstartedattending meetingsoftheBoardDirect (2) Resignedfromthepositionof Directorseffective1stJanuary2014. Mr.ChatreeDuangnet,M.D.,and Mr.PraditTheekakultwooutoffour(24)Directorssignjointly andaf (1) 4. Mr.PrasertPrasarttong-Osoth,M.D. 3. Mr.WichaiThongtang 2. Mr.ChuladejYossundharakul, M.D. 1. ProfessorEmeritusArunPausawasdi,M.D. 15. Mr.SombutUthaisang 14. Mrs.PhornsiriManoharn 13. Mr.ThongchaiJira-alongkorn 12. Mr.SripopSarasas 11. Mr.SomchaiSujjapongse,Ph.D. 10. Mr.ChawalitSetthmethikul 9. Mr.ChatreeDuangnet,M.D. Professor EmeritusSantasiriSornmani,M.D. 8. 7. Mr.PraditTheekakul 6. Mr.ChirotchanaSuchato,M.D. 5. Mr.PongsakViddayakorn,M.D. Authorized signatoriesoftheCompanyincludeMr.Prasert Prasarttong-Osoth,M.D.,Mr.ChuladejYossundharakul, M.D., Director’s Name (1) (4) (as of31stDecember2013) (3) (1) (2) (1) (1) Committee/Member oftheNominationand Committee/Member oftheNominationand 1st ViceChairman/ExecutiveDirector/ Nomination andRemunerationCommittee Nomination andRemunerationCommittee Chairman oftheBoard Independent Director/MemberofAudit Independent Director/MemberofAudit Independent Director/Chairmanofthe Independent Director/Directorofthe Director oftheNominationand Director /Executive Director /Executive Director /Executive Audit Committee/Chairmanofthe Group CEO&President/ Remuneration Committee Chairman ofExecutive Independent Director Independent Director Remuneration Committee Remuneration Committee 2nd ViceChairman Committee Director Director Title Directors

Directors Board of 14/14 14/14 13/14 14/14 14/14 10/14 14/14 14/14 14/14 14/14 14/14 14/14 6/14 0/0 8/9 Committee Meeting Attendance Audit 8/8 3/8 8/8 Nomination and Remuneration ų x thecompanyseal. 3/3 1/3 3/3 3/3 3/3 g no.12/2013 Committee Executive 12/12 12/12 12/12 12/12 11/12 ors Management Structure

Names of company independent director are independent directors in subsidiaries. 1. Professor Emeritus Santasiri Sornmani, M.D. Independent director/ Medic Pharma Co., Ltd. 2. Mr. Sombut Uthaisang Independent director/ Chairman of Audit committee : Thonburi Medical Centre PCL Name of directors who retired by rotation and resigned in year 2013 Board of Director Meeting Name Position Date attendance 1. Miss Kananuch Lekwijit Director 18 April 2013 5/5 2. Mr. Thavatvong Thanasumitra Director 23 November 2013 13/13 Duties and Responsibilities of the Board of Directors 1. Perform duties using their knowledge and expertise for the beneųt of the Company in accordance with the regulations of the Company and resolutions of the shareholders’ meeting. Directors are authorized to perform actions indicated in the Articles of Association, the Public Company Act and relevant laws. 2. Comply with the provisions and the good practices of listed company directors of the Stock Exchange of Thailand. 3. Determine policies and ensure that management acts in accordance with those policies, as well as approve business plans, annual budgets, investments, and make ųnancial decisions. 4. Monitor the operational results of management and the Company in order to ensure consistency with established goals and plans. 5. Set efųcient internal control and audit systems for the purpose of auditing, operational oversight and liaise with the Audit Committee. 6. Protect the interests of the shareholders and practice standardized and transparent disclosure of information. 7. Manage ConŴicts of Interest 7.1 Report conŴicts of interest of oneself, spouse and related persons as prescribed in the Securities and Exchange Act, as well as report securities held of oneself, spouse and children (not yet of legal age) to the Company Secretary for further reporting of any changes at the Board of Directors’ meetings. 7.2 Ensure compliance with the laws and regulations of the Stock Exchange on procedures and complete disclosure of transactions with potential conŴicts of interest. 7.3 Report to the Company on any conŴicts of interests, which pertain to the management of the Company or subsidiaries, of oneself or related persons. For transparency, such transactions are to be reported to the Board of Directors whenever there is a change. 53 Management Structure 54 4. Mr.Trin Charumilind,M.D. 3. Mrs.NarumolNoi-am 2. Mr.ChatreeDuangnet,M.D. 1. Mr.PrasertPrasarttong-Osoth,M.D. Name Duties andResponsibilitiesoftheExecutiveManagement 1. ExecutiveManagement “Corporate Governance”. of Directorsandthesub-committeescanbefoundundersectionentitled on thestructureofcommittees,dutiesandresponsibilitiesBoard Nomination andRemunerationCommittee,theExecutiveCommittee.Details the AuditCommittee,whichisentirelycomprisedofindependentdirectors, studying and Committee toensuregoodcorporategovernanceandareresponsibleforauditing, Committee, theNominationandRemunerationExecutive theBoardof Directors(asthecasemay be). Other dutiesasassignedfromtimetobytheExecutive Committeeand/or 6. considersolutionstoproblems thattheCompanyfaces. Committee and/ortheBoardofDirectors (asthecasemaybe),aswell Consider andreviewmatterstobepresented forconsiderationbytheExecutive 5. reportingofanychangesattheBoardDirectors’meetings. spouse andchildren(notyetoflegalage)totheCompany Secretaryforfurther in theSecuritiesandExchangeAct,aswellreportsecuritiesholdingsofoneself, Report con 4. thedeterminedgoalsandplans. BoardofDirectorstoensureresultsandthattheCompany isoperatingunder 3. Report resultsandprogressoftheCompanyregularlyatmeeting bestinterestoftheorganizationandshareholders fairnesstostakeholders. Executive Management shallcarrytheirdutieswithhonestyandcareforthe (as thecasemaybe) within theapprovedduties,responsibilitiesandauthorization. Meetings, theBoardof Directors’MeetingsandtheExecutiveCommittee 2. ManagetheCompanyinaccordancewithresolutionsofShareholders’ theCompany,aswellstrictlyabidingbyrelevantlawsandregulations. goals,guidelines,provisionsandgoodcorporategovernanceasprescribedby 1. Operateand/ormanagetheCompanyinaccordancewithpolicies,plans, The BoardofDirectorsappointedthesub-committees,comprisingAudit ų ltering theCompany’soperations.Thethreesub-committeesinclude Ŵ icts ofinterestoneself,spouseandrelatedpersonsas stipulated Chief OperatingOf Acting ChiefOperatingOf Group CEO&President/ Chief ofDoctors Chief FinancialOf ų ų cer cer Title ı MedicalAffairs ų cer ı AdministrativeAffairs Management Structure 55 5,388,360 4,112,260 3,592,260 4,192,260 3,432,260 3,592,260 3,992,260 4,212,260 3,992,260 3,712,260 (Unit : Baht) 400,000 600,000 400,000 400,000 Executive Committee 180,000 120,000 120,000 Remuneration Nomination and Audit 480,000 Meeting Allowance Committee

560,000 560,000 560,000 400,000 560,000 560,000 520,000 560,000 840,000 560,000 Board of Directors 4,548,360 3,032,260 3,032,260 3,032,260 3,032,260 3,032,260 3,032,260 3,032,260 3,032,260 3,032,260 Remuneration catios of the Capital Market Supervisory catios of the Capital ų Title Total Director Director Committee of Directors 2nd Vice Chairman 1st Vice Chairman/ Executive Director/ ndependent Director / I Chairman of the Board Independent Director / Chairman of Executive Group CEO & President/ Chairman of the Nomination Director of the Nomination and Remuneration Committee Director of the Nomination Director / Executive Director Director / Executive Director and Remuneration Committee and Remuneration Committee Chairman of the Audit Committee /

le shown on page 59 of company annual report 2014. le shown on page 59 of company annual ų Name of Director The Board of Directors has appointed Ms. Kessara Wongsekate, Assistant Vice has appointed Ms. Kessara Wongsekate, The Board of Directors 5. Mr. Pongsak Viddayakorn, M.D. 6. Mr. Chirotchana Suchato, M.D. 7. Mr. Pradit Theekakul 8. Professor Emeritus Santasiri Sornmani, M.D. 9. Mr. Chatree Duangnet, M.D. 10. Mr. Chawalit Setthmethikul 3. Mr. Wichai Thongtang 4. Mr. Prasert Prasarttong-Osoth, M.D. 1. Professor Emeritus Arun Pausawasdi, M.D. M.D. 2. Mr. Chuladej Yossundharakul, President, as the Company Secretary to act in accordance with the law with regards Secretary to act in accordance President, as the Company exchange and noti to securities and securities disclosure and reporting the Company Secretary shall ensure Board. Furthermore, in accordance with the laws responsibility to the regulating body of information under Company Secretary shall disclosure of company information. The and regulations on compliance with the resolutions of the Board also coordinate and monitor to ensure Meetings for success and good corporate of Directors’ and the Shareholders’ duties as assigned by the Board of Directors. governance, as well as carry out any other The company secretary pro (1) Monetary Remuneration sub-committees (for 1 year period ending 31st December 2013) Remuneration of Directors, including 4. Directors’ and Executive Management Remuneration 4. Directors’ and Executive Management 3. Company Secretary Management Structure 56 Remuneration ofdirectorswhoretiredbyrotationand resignedinyear2013 (for 1yearperiodending31stDecember2013) Remuneration ofIndependentDirectorsReceivedFromSubsidiaries andtherefore,didnotattendedanyBoardMeetingsin2013. (2) AppointedasDirectortoreplacearetiredbyresolutionoftheBoardDirectorsatMeeting12/2013on18thDece (1) AppointedIndependentDirectorbyresolutionofthe2013AnnualGeneralMeetingShareholderson18thApril2013. 2. Mr.ThavatvongThanasumitra 1. MissKananuchLekwijit 2. Mr.SombutUthaisang 1. ProfessorEmeritusSantasiriSornmani,M.D. Total ofdirectorsremuneration 15. Mr.SombutUthaisang 14. Mrs.PhornsiriManoharn 13. Mr.ThongchaiJira-alongkorn 12. Mr.SripopSarasas 11. Mr.SomchaiSujjapongse,Ph.D. Name ofDirector Name Name (2) (1) and RemunerationCommittee and RemunerationCommittee Member ofAuditCommittee/ Member ofAuditCommittee/ Director /Executive Member oftheNomination Member oftheNomination Independent Director/ Independent Director/ Independent Director Independent Director il Total Title oiinTotal Position Chairman ofAuditcommittee: Thonburi MedicalCentrePCL The MedicPharmaCo.,Ltd. Director Director Independent director: Independent director/ il Total Title Remuneration 40,935,480 3,032,260 3,032,260 3,032,260 23 November2013 18 April2013 Date 7,360,000 Annual Allowance Directors Board of 320,000 560,000 560,000 240,000 352,942 Directors’

Committee Meeting Allowance 920,000 320,000 120,000 Audit Annual Allowance Board Meeting 3,032,260 3,032,260 Allowance Directors’ 70,000 75,000 Nomination and Remuneration 580,000 120,000 40,000 Meeting Allowance Audit Committee Board Meeting Allowance 520,000 200,000 60,000 2,200,000 Committee Executive 400,000 (Unit :Baht) (Unit :Baht) (Unit :Baht) 3,552,260 3,232,260 mber 2013 51,995,480 130,000 427,942 3,992,260 4,032,260 3,432,260 320,000 0 Management Structure

Remuneration of Executive Management (for 1 year period ending 31st December 2013) In 2013, the Company paid the top 4 Executives ofųcers in the form of salary, bonus and meeting allowance in the total amount of Baht 71.23 million. In addition, the Company made contributions to the provident fund for those executive ofųcers in 2013, which is at a rate as speciųed in the Company’s regulations as is the rate for general employees, in the amount of Baht 2.08 million. (2) Other Remuneration Directors and Sub-Committee Members Apart from compensation in the form of meeting allowances and annual allowances as approved by the Shareholders, as the Company provides medical services, therefore, the Directors receive medical beneųts according to company policy, the same as with employees of the Company. Executive Ofųcers Apart from compensation in the form of company car and mobile phone, executive ofųcers also receive medical beneųts according to company policy, the same as with employees of the Company.

5. Employees As of 31st December 2013, the Company employed a total of 3,525 persons and 1,063 physicians, details as follows: Full Time Employees Temporary Employees Type and Physicians and Consulting Phyicians Total Nurses 954 133 1,087 General employees 2,089 349 2,438 Total employees 3,043 482 3,525 Physicians 415 648 1,063 Note: Full Time Physicians means doctors who work for the Company from more than 40 hours a week but they are not considered employees of the Company Human Resources Development Policy 1. The Company recognizes the signiųcance of our employees a “Human Capital”, which is the most important factor in driving the organization to reach the deųned goals. Therefore, the Company has clearly determined action plans and allotted an annual budget. The different levels of human resources development are as follows: 1.1 Orientation for new employees to introduce the organization as well as provide an understanding of the organization’s culture, management structure through learning with management and current employees. The purpose of the orientation is to provide new employees a preliminary knowledge and understanding of their responsibilities, which will develop and draw out their potential to prepare for their career in the organization. 57 Management Structure 58 conservation,andschool lunch forchildrenwiththeVejdusit Foundation. public assistanceduringnaturaldisasters,improvementofbuildings forenergy include theGreenHealth Project,MobileNursingUnitsfortheLessFortunate, leave, inorder toinstillsocialresponsibilityintheirconscience.Such activities managementinattendingCSRactivitiesduringworkhours withouthavingtotake within theorganization.Furthermore,Companysupportsemployeesand sothattheymayintroducethoseprogramsandother knowledgeintoactivities opportunity toattendtrainingonCSRorganizedbytheStockExchangeof Thailand Company’s vision.Suchactivitiesincludegivingmiddlemanagementthe CorporateSocialResponsibility(CSR)inouremployees, whichcorrespondstothe Companyaimstodeveloppersonnelintogoodmembers ofsocietybyinstilling 3. Corporate Social ResponsibilityApartfromskillandcareerdevelopment,the templeanddonatingmedicinecabinetstoschools. PhysicalCheck-ups,and“DoGoodinYour BirthMonth”bymeritmakingatthe NetworkSportsEvents,“OfferingFoodtoMonksinYour BirthMonth”,Employee organizing variousactivitiessuchasNewYear’s Part,NetworkSingingContest, 2. The Companygivescontinuedimportanceto“engagement”ofemployeesby System”,and“LaborLaws”. ofLeadership”,“CrisisManagement”,“RussianCamp”,“Transformative HR ofthetopicstheseactivitiesareGreatLeader”,“CharacteristicandStyle bysuccessfulexecutivesandspeakersfromoutsidetheorganization,examples accordingtotheirinterests.Theseactivitiesareorganizedwithspeciallectures sharing activities,whichallowstheopportunitiesforemployeestoattend Course. Furthermore,theCompanyalsoorganizesnon-trainingandknowledge development, andskilldevelopmentsuchastheEffectiveFeedbackSkills traininganin-housetraining,whichcoversknowledgedevelopment,attitude Training aswellsurveyingtrainingneeds andhasprovidedbothpublic 1.3 TheCompanyhasdeterminedTraining DevelopmentusingCompetencyBase Program(BIMP)fornewsectionheads. department heads,andBDMSIntroductiontoHealthcareManagement Mini-MBA inHealthcareManagementforlowerlevelmanagementor managementordivisionheads,theBDMSDevelopmentProgram(BLDP)and Program (BEMP)andtheMini-MBAinHealthcareManagementformiddle Program (AMP)fortoplevelexecutives,theBDMSExcellent Management Company hasdevelopedpersonnelthroughtheAdvancedManagement employees formanagementresponsibilitiesandtheircareerpaths.The for thosethatwillbepromotedtomanagementatalllevels,prepare The Companyhasalsodeterminedthenumberofmanagementtraininghours 1.2 Career Developmentbyclearlydeterminingcareerpathsandpromotionpaths. Management Structure 59 Director, Ļ Director, Ļ Director, Bangkok Ļ Director, Phyathai 3 Director, Phyathai 1 Ļ Ļ Director, Paolo Medic Ļ Company Secretary Ļ Director, Bangkok Premier Ļ Director, Bangkok Hospital Ļ Director, Paolo Chokchai 4 Bachelor Degree of Business Ļ Ļ Director, A.N.B. Laboratories Co., Ltd. Ļ Director, Royal Bangkok Healthcare Ļ Role of the Compensation Committee Role of the Compensation Committee Ļ Director, Samitivej Sriracha Co., Ltd. Ļ Director, Bangkok Hospital Rayong Co., Ltd. Director, Prasit Patana Plc. Ļ Ļ re drills and training course re drills and training Director, Bangkok Hospital Udon Co., Ltd. Director, Phyathai 2 Hospital Co., Ltd. Ļ Ļ ų Director, Sriracha Nakorn Hospital Plc. Ļ cation Program Class 166/2012, Thai Institute of Directors cation Program Class 166/2012, Thai ų Role of the Nomination and Governance Committee Class 5/2013, Role of the Nomination and Governance Ļ

Director, Bangkok Health Insurance PCL. Director, Paolo Nawamin Co.,Ltd. Director, Paolo Samutprakarn Co., Ltd. Ļ Ļ Ļ Directors Certi Director, The Medic Pharma Co., Ltd.

Assistant Vice President, Bangkok Dusit Medical Services PCL Director, Bangkok Hospital Ratchasima Co., Ltd. Life Insurance Broker Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Ļ Hospital Chiangmai Co., Ltd. Hospital Co., Ltd Hospital Co., Ltd. Association Thai Institute of Directors Association Association Class 16/2013, Thai Institute of Directors Miss Kessara Wongsekate Ļ Administration, Major Banking and Finance from Chulalongkorn University, Thailand Ļ Thonburi Medical Center PCL. Program, Thai Institute of Directors Association Khao Yai Co., Ltd. Khao Yai Samitivej Chonburi Co., Ltd. Ļ ts totaling Baht 11,712.6 million divided by the costs of the Company ts totaling Baht 11,712.6 million divided ų Two ex-managements of the company was petitioner sue the Company to the ex-managements of the company was petitioner sue the Company Two For year 2013 the Company and subsidiary paid the compensation to the For year 2013 the Company and subsidiary Position Company Secretary Education and Training Central Labor Court, in the case of unfair dismissal. The court ordered the company Central Labor Court, in the case of unfair of Baht 47.5 million. to pay to the plaintiff the total amount a employee, which includes salaries, social security payments, the Medical fee and employee, which includes salaries, social other bene of Baht 2,566.5 million and Baht 9,146.1 million subsidiaries. of Baht 2,566.5 million and Baht 9,146.1 Employee compensation Labor disputes issues within 3 years Labor disputes 4. The Company also gives importance to safety and hygiene in the work place by gives importance to safety and hygiene 4. The Company also through various media within the providing knowledge and information In addition, the Company organizes organization. Environment”. and Working on Occupational Health, Safety entitled “Committee Corporate Governance Corporate Governance

The Company recognizes its role, duty and responsibility in practicing good corporate governance and believes that corporate governance determines the structure of the relationships among the shareholders, the Board of Directors, management and all stakeholders. The aim of good corporate governance is to increase competitive edge and value for shareholders in the long term, as well as increase the beneųts to the other stakeholders, which will ensure the Company’s continuous and sustainable growth. The Board of Directors plays many signiųcant roles; one of those roles is to ensure good corporate governance as assigned to the President and management, which will comply with corporate governance policies approved by the Board of Directors and the guidelines set by the Stock Exchange of Thailand. The Company monitors the new regulations that have been put into practice and adjusts the Company’s practices to comply with such regulations. In the past year, the Board of Directors had approved the policy on information disclosure, the policy on insider information, and the policy on anti-corruption. These policies are part of good corporate governance and have been announced to those related to the issues for further appropriate action. 1. Corporate Governance Policy The Board of Directors is responsible to every shareholder and endeavors to understand the needs of shareholders, as well as assess economic, social, environmental and ethical factors which may signiųcantly impact the interests of shareholders. Each Director must possess honesty, determination, as well as independence of thought and decision making. In addition, the Board of Directors must also be aware of the interests of the other stakeholders. The corporate governance policy recognizes the special role that the Board of Directors plays in connecting the shareholders with the President, as well as management. Furthermore, the policy clearly covers the dual role of the President and other directors who are both members of the Board and members of executive management. Since 2008, the Board of Directors has reviewed and revised the current corporate governance policy and made many changes to meet international standards. The Board of Directors has emphasized good corporate governance through integration of policy and business direction, sufųcient internal controls and auditing, as well as ensuring that management act efųciently under the established policies so as to ascertain that the Company is transparent, ethical and abides by the governing laws and regulations. The Board of Directors has entrusted the Audit Committee to draft the internal audit scheme to ensure that the organization complies with all policies, including the regular monitoring, review and revision of policies. This is to assure that the Company’s corporate governance policy is up-to-date and suits the present situation. The Corporate Governance Policy covers the following topics: 1. Shareholders’ Rights 2. Equal treatment of shareholders 3. Policy on stakeholders’ interests 4. Disclosure and transparency 5. Responsibility of the Board of Directors and sub-committees Rights and equal treatment of shareholders 1. Rights and Equality The Company is responsible to shareholders in disclosure of information, preparation of ųnancial statements, utilization of insider information and resolution of conŴicts of interest. Management must possess ethics and any decisions made must be made with honesty and integrity, as well as be fair to major and minor shareholders for the good of the whole. The Company is aware of its responsibility in assigning importance to rights without bias and with equal treatment of all shareholders. It is the Company’s duty to protect the rights and interests of the shareholders, including the right to receive dividends and the right to receive relevant information regularly and in a timely fashion. Moreover, the Company has the duty to disclose information with transparency and show responsibility of management by holding the Shareholders’ Meetings. The Company has the policy to support disclosure of information and business transactions so that the shareholders may better understand the Company’s operations. Major and minor shareholders, institutional investors and foreign investors equally receive information on business operations, management policy and the ųnancial statements of the Company and have the right to be treated fairly. At each Shareholders’ Meeting, the Company will distribute the letter of invitation in advance to inform the shareholders of the meeting agenda as well as opinion of the Board of Directors on each agenda and other documents so that the shareholders may be well informed when making the decision to vote. In the letter, the Company also informs shareholders of their rights in attending the meetings and their right to vote. In addition, to provide greater convenience, the Company posts the letter of invitation to the Shareholders’ Meeting on the Company’s website. Since the Shareholders’ Meeting in 2011, the Company has posted the letter of invitation on the website 30 days in advance of the meeting date. 60 Corporate Governance er he ders’ 61 ed and capable ų cial to the Company, the ų ed and capable persons as directors to the Board of Directors as directors to the Board of Directors ed and capable persons ų cation of the meeting is published in at least one daily Thai ų fth (1/5) of shares outstanding or shareholders no less than 25 persons ų cation by registered mail no less than 10 days in advance for general matters, cation by registered mail no less than 10 days in advance for general matters, ų

From the Annual General Shareholders’ Meeting in 2007 onwards, the Company has announced the shareholders’ meeting From the Annual General Shareholders’ Meeting in 2007 onwards, the Company has announced the meeting, meeting agenda as well The meeting invitation shall include details of the meeting, such as time and place for The Company has sent letters of noti and accompanying documents both in Thai and English on the Company’s website (http://www.bangkokhospital.com) under and accompanying documents both in Thai and English on the Company’s website (http://www.bangkokhospital.com) ensure shareholder equality. Since 2011, the menu item “Investor Relations” as an additional mode of dispensing information to website 30 days prior to the meeting date. the Company posted the meeting invitation in both Thai and English on the Company’s for informed decision making (if any), the as opinions of the Board of Directors on each agenda and accompanying documents meeting. Additionally, the Company has Company’s annual report, proxy form and a list of accompanying documents of the that the shareholder appoint an delivered details on the meeting proceedings and appointment of proxy, including suggesting decisions when exercising their independent director to act as proxy. This is to assist the shareholders in making informed rights and voting. Shareholders with total shares no less than one 2. Shareholders’ Meetings Shareholders’ Meeting as prescribed by law and give shareholders the opportunity The Company’s policy is to convene the The Company has a policy to give the shareholders the opportunity to submit questions and to propose agendas for the to submit questions and to propose policy to give the shareholders the opportunity The Company has a in the case approval is needed for which is a higher standard than the law requires, and at least 14 days in advance connected transactions or special matters. The noti consecutive days prior language newspaper and in at least one daily English language newspaper for three to the meeting date. The shareholders shall receive proxy forms to allow the shareholders to appoint an authorized representative to attend to appoint an authorized representative receive proxy forms to allow the shareholders The shareholders shall Prior to Meetings to be fully informed before exercising their rights. To this end, the Company has held the annual general shareholders meeting this end, the Company rights. To to be fully informed before exercising their accounting year. The meetings are held in compliance with the laws and regulations within four months from the end of the of the meeting to after the meeting. of the Stock Exchange of Thailand from announcement of the meeting and organization prior to the meeting. The Company gives opportunity to do so for a period of 45 days and interested shareholders can access opportunity to do so for a period of 45 days and interested shareholders can access prior to the meeting. The Company gives that in proposing agendas and nominees on the Company’s website. In the case information on guidelines and conditions the proposed agenda is suitable, constructive and bene the Board of Directors has considered that 2014. prior to the meeting between 1st December 2013 to 14th January persons as directors to the Board of Directors the shareholder has equal rights to express their opinions and pose questions within During the Shareholders’ Meeting, each voting and counting votes is carried out swiftly with full disclosure. The Company appropriate time frame. The process of law and the majority vote decides the outcome (for general agendas for which the deems that one share equals one vote is equal, the Chairman of the meeting shall cast an additional vote, apart from his/h does not specify otherwise). If the vote or a Ballots shall be used only in the case that a shareholder objects, abstains vote as a shareholder, as the deciding vote. in t for further inspection after the meeting. The results of the voting are recorded split vote. The ballots shall be retained the number of “for”, “against” and “abstain” votes are recorded, as well as minutes of the meeting. For each agenda, case of the meeting so that shareholders may later verify the information.In the questions raised, explanations and opinions with in any of the agendas, the shareholder is not allowed to vote on that agenda that any shareholder has a special stake or removal of directors. the exception of voting for appointment petition the Board of Directors to hold an whose total shares is no less than one tenth (1/10) of shares outstanding, may rules and regulations. The petition must extraordinary meeting of the Company’s shareholders as stated in the company of Directors must convene the Extraordinary clearly state the reason for convening the extraordinary meeting. The Board Details of the proceedings of shareholders’ Shareholders’ Meeting within one month from the day the petition is received. meetings are as follows: Ļ Annual Shareholders’ Meeting, as well as to nominate quali Annual Shareholders’ meetings and vote on their behalf. In addition, to provide another channel in exercising shareholders’ rights, the Company another channel in exercising shareholders’ their behalf. In addition, to provide meetings and vote on should appoint an a particular meeting, the shareholder case that the shareholder cannot attend suggests that in the proxy, shareholder’s behalf. In appointing such attend the meeting and vote on the Director as proxy to Independent invitation package of Attorney form included in the meeting any one of the proxy forms or the Power shareholders may use form from the Company’s website. or download the proxy Boardof Directors will include such agenda in the meeting proceedings for consideration of the shareholders. However, if the in the meeting proceedings for consideration of the shareholders. However, Boardof Directors will include such agenda agenda is not suitable, the Board of Directors shall report this to the Sharehol Board of Directors is of the opinion that such the agenda was not included in the proceedings. In 2013, the Company provided Meeting and provide reasons as to why that agendas for the annual general meeting as well as to nominate quali opportunity for shareholders to propose Corporate Governance

The meeting invitation shall include details of the meeting, such as time and place for the meeting, meeting agenda as well as opinions of the Board of Directors on each agenda and accompanying documents for informed decision making (if any), the Company’s annual report, proxy form and a list of accompanying documents of the meeting. Additionally, the Company has delivered details on the meeting proceedings and appointment of proxy, including suggesting that the shareholder appoint an independent director to act as proxy. This is to assist the shareholders in making informed decisions when exercising their rights and voting. For the convenience of the shareholders, the Company provides registration at the meeting using bar codes and has prepared separate ballots for each agenda, especially for the selection of directors, whereby the Company has prepared ballots for the voting of individual directors. Shareholders and/or proxies shall receive the ballots at the registration stage. Ļ During Meetings The Company has assigned the Chairman of the meeting the duty of notifying and explaining the voting procedures in the various agendas before the meeting is ofųcially convened. The President is assigned the task of responding to questions from the shareholders. After each agenda, the results of the vote will be announced and duly recorded. For the convenience of the shareholders and for clarity, the Company uses multimedia facilities in presenting information and voting results after each agenda during the meeting. The Company has the policy to strictly adhere to the meeting agenda and to a llow shareholders equal opportunity in casting votes. To honor the rights of all shareholders, the Company has put in place a policy, which requires that all directors, as well as sub-committees, the auditor and executive management such as Chief Financial Ofųcer, Accounting Director and Financial Director (Investor Relations), attend each shareholders’ meeting. If any director or executive cannot attend the shareholders’ meeting, he/she must submit a written explanation of the absence to the Chairman of the Board (in the case of directors) or the President (in the case of executive management). The Chairman of the meeting has provided sufųcient opportunity for shareholders to raise questions and advise on business operations, and the annual ųnancial reports without infringing shareholders’ rights. The Chairman of the Board and the President will clarify all information during the meeting and give all directors the opportunity to unofųcially meet the shareholders after each meeting. Ļ After Meetings The Company has prepared the minutes of the meeting as well as recorded the results of the voting. For each agenda, number of “for”, “against” and “abstain” votes are recorded, as well as the questions raised, explanations and opinions of the meeting are detailed in the minutes. The minutes of the shareholders’ meeting are submitted to the Stock Exchange of Thailand within the prescribed 14 days after the meeting. The Company has the policy to announce the minutes of the shareholders’ meeting on the company website (http://www.bangkokhospital.com) under the menu item “Investor Relations”. Policy on Treatment Towards Stakeholders The Company recognizes the signiųcance of each group of stakeholders, whether they are internal personnel or external stakeholders such as shareholders, customers, creditors, counter-parties, communities, government agencies and other related organizations. The Company also recognizes that the support of each of the stakeholders will ensure the stability and longevity of the organization in the long term. Therefore, the Company has the policy to protect the rights of the stakeholders through compliance with relevant laws and regulations, as well as respecting the interests of all related parties. The policies are as follows: 1. Policy on Transactions which may cause ConŴict of Interest and Transactions between Companies The Board of Directors understands that transactions which may lead to conŴicts of interest and/or transactions with related counter-parties must be thoroughly contemplated to ensure compliance with the relevant laws and regulations of the Securities and Stock Exchange Commission and the Capital Market Committee, as well as the Company’s internal guidelines. Moreover, such transactions must be strictly carried out as with any other transactions with external parties which have no relationship with the Company. Also, the transactions must fully provide value to the Company and the shareholders. The terms and conditions of the transactions must follow the generally accepted standard terms and conditions of business transactions. The Company has the policy to prevent directors, management and employees from using their status for their own personal gain. Directors, management and employees must refrain from engaging in transactions which have conŴict of interest with the Company. Furthermore, any directors, management or employees who have a stake in any transactions shall not be allowed to participate in the decision making process. Directors, especially, will not be allowed to consider or vote on any matters in which they have an interest, including transactions between companies and transactions between subsidiaries and stakeholders. 62 Corporate Governance

2. Policy on Shareholders The Company aims to achieve the utmost beneųts in the long term for the shareholders through stable growth and sustainable capability in generating proųts, including maintaining the competitive edge by recognizing the current and future business risks. The Company emphasizes business for consistent proųts through continuous business development. Moreover, the Company strives on professional management, efųcient internal control, systematic audit and strong risk management to reciprocate and show responsibility to our shareholders. Other than fundamental rights of the shareholders such as the right to inspect number of shares, right to receive share certiųcate, right to attend shareholders’ meetings and to vote, right to freely express opinions and make suggestions on the Company operations at the shareholders’ meetings, right to fairly receive returns, and other lawful rights, the Company also has the policy to disclose information justly, with transparency and in a timely fashion under business limitations so that every shareholder equally receives information. 3. Policy on Employees Employees are a valuable asset to the Company. Capable and experienced employees are consistently well-taken care of in compliance with the Company’s strategy and operational plans. The Company also ensures equal opportunity and suitable compensation. Furthermore, the Company has arranged for the necessary training by both internal and external persons in order to continuously enhance the skills of employees. Moreover, the Company supports and promotes the healthy working environment and organizational culture, and treats employees equally and justly. Employees are given the opportunity to express their opinions and make suggestions to management via the Company’s internal website. Furthermore, employees are provided with beneųts and safety which include medical beneųts, provident fund, and academic scholarships for doctors, nurses and employees so that they may use the knowledge to assist in the development of the organization. The aim is for the Company to be a place of learning for personnel, as well as to motivate knowledgeable and capable persons to remain with the organization in the long-term. The Company has put in place guidelines in human resources management from recruitment, training to maintaining quality personnel as follows: Ļ Recruitment and Career Advancement The Company recognizes the importance of personnel development from the recruitment process onwards. To this end, the Company clearly deųnes the level of education, experience, expertise and other qualiųcations of each position in order to recruit the most suitable candidates. In recruiting for a particular position, the Company shall give priority to internal staff in order to provide an opportunity for career advancement. If there are no suitable internal candidates, the Company shall then consider external candidates. Each new employee is required to attend orientation in order to be informed about the working process of the various departments within the organization. This will enable employees to plan and act according to the objectives set. The Company also gives importance to career advancement of employees in order to retain outstanding employees. Ļ Employee Training The Company has the policy to support training and development of personnel. In order to regularly and continuously develop and improve employees’ skills, the Company organizes both internal and external training sessions. Apart from training on work skills organized internally, the Company also encourages employees to exchange knowledge and experience among the various departments, be it through meetings or information exchange through the intranet. For external training, the Company encourages employees to ųll out questionnaires on training desired and will send them to attend those training sessions as appropriate. The Company shall monitor results or measure the knowledge gained in each training course for the greater beneųt of the Company and the employees. Ļ Employee Evaluation The Company evaluates the employees’ knowledge and skill by clearly and justly specifying the guidelines in evaluating employees at all levels. The employees shall be evaluated based on their capabilities and potential in terms of skill, knowledge, attributes and performance. The Company has widely communicated the evaluation guidelines in advance. In determining employee compensation, apart from business proųts and the state of the economy in each year, the employee evaluation is also an important factor. By basing employee compensation on employee evaluations, employees will be encouraged to carry out their duties and develop their potential efųciently and effectively. Ļ Equal Treatment of Employees The Company recognizes the importance of treating employees equally within the organization, from recruitment to promotion, without bias or nepotism in evaluations, when expressing opinions and when working. 63 Corporate Governance

In order to become aware of each employee’s satisfaction or happiness in their work, the Company has speciųed that surveys be conducted of employees at all levels to gather opinions and suggestions. The information gathered can be used to correct and/or improve any shortcomings in management of the organization and personnel both in the short and long term. In addition, the Company has also set guidelines on submitting grievances in order to fairly and justly alleviate any frustration in the work place. Ļ Provide Better Quality of Life for Employees The Company recognizes the importance of good quality of life of our personnel, which will encourage our employees to work efųciently. We, therefore, pay close attention to ensuring that the workplace is safe and hygienic for the health and beneųt of our employees. In terms of health, the Company provides annual check-ups for employees. Furthermore, if the number of employees in any department is insufųcient for the amount of work assigned, the Company shall employ additional employees so that the amount of work is suitable for the number of employees to better the quality of life for all. Ļ Build Solid Management and Intra8orking Systems The Company recognizes the importance of continuous work processes from beginning to end in order to produce quality output that meet standards, as well as eliminate and lessen conŴicts. To this end, every department has contributed to the Operational Manual to be used as a guideline in communicating and coordinating among departments within the organization. The manual is accessible by all through the intranet and is reviewed and revised as appropriate. Ļ Build Good Relationship between Management and Employees The Company recognizes the signiųcance of a good working relationship between management and employees, which affects the work efųciency. Therefore, we have organized activities between management and employees, which will improve the relationship between the two and encourage contentment in the work place; such activities include New Year’s Party, merit making and sports events. In addition, management meets regularly with employees in order to exchange views. This will enable the organization to efųciently and effectively reach for the same goals. Ļ Create FirstRate Employees for the Organi[ation and Society In order for employees to conform and for collective discipline, when any employee evades or is in violation of work regulations, that employee will be considered to be at fault. This must be deliberated and rectiųed according to the regulations by taking into consideration good corporate governance as deųned by the Company, which has set a guideline for management and employees. The Company ųrmly believes that developing employees into good and outstanding individuals will ensure the organization’s stable and sustainable growth. 4. Policy on Management The Company realizes that management is an important success factor. To this end, the Company has set up a suitable compensation program which is comparable to management in the health care business. Moreover, management is able to carry out their duties and responsibilities independently without intervention, which is for the mutual interest of the organization and all related persons. 5. Policy on CounterParties The Company does business justly and ethically with partners, competitors, creditors, counter-parties and others according to the terms and conditions in the trade agreement. The Company has the policy to avoid any actions which may be dishonest or infringe on the rights according to the law or as mutually agreed upon of the counter-party, as well as to ensure that the transactions are ethical business-wise. 6. Policy on Customers The Company recognizes that the customers are an important success factor of the business. The Company strives for customer satisfaction by providing quality professional service with the determination to continuously improve the quality of medical care services in order to meet the needs and expectations of the customers. This organization maintains the privacy of customers and will not disclose any customer’s information unless required by law or when the customer has given consent. 7. Policy on Social Responsibility and the Environment The Company aims to consistently treat society and the environment with the highest standards by upholding safety and environment-friendly standards throughout the business. The Company is involved in public interest and has participated in activities that beneųt the community and the environment. It is the Company’s policy to act responsibly towards society (Please ųnd detail as attach “Corporate Social Responsibility report”), related persons and personnel within the organization. 64 Corporate Governance

The Company recognizes the impact of the medical care process on the environment, as well as the safety of the customers and the health of all levels of personnel providing service. To this end, the Company ųrst adopted ISO 14001 for Environmental Management and Mor Or Gor. 18001/ OHSAS18001 for Occupational Hygiene and Safety Management within the organization and received certiųcation from Management System Certiųcation Institute (MASCI). Furthermore, the Company has announced and conveyed the “Environmental, Occupational Health, and Safety Policy” within the hospital to all personnel and related persons since 2003. The policy has been practiced earnestly and consistently, garnering awareness and resulting in organizational culture. Moreover, the Company has participated in many charitable activities and has supported the employees’ concerns regarding the environment and the community. In 2007, the Company established the “Community Relations Committee” to oversee, coordinate and communicate between the organization and the community. Disclosure and Transparency The Company has the policy to ensure that disclosure of ųnancial information and general information to shareholders, investors and securities analysts, as well as the general public, is done so sufųciently, completely, justly, timely, with transparency, and as prescribed by relevant laws and regulations. The Company has the policy to disclose the ųnancial statements, important information and any other information which may affect the interests of the shareholders or the decision to invest in the Company, which in turn, may affect the price of the shares and/or securities of the Company. This information will be disclosed sufųciently, completely and at the appropriate time through fair and suitable channels. The main purpose is to ensure that the decision to invest in securities of the Company is made fairly and with equal information. Since 2013, the Board of Directors has determined the policy on information disclosure and policy on insider information and distributed those policies to the directors, management and employees for further action. The Board of Directors has prepared the report of responsibilities to the ųnancial statements along with the report from the auditors and has included the reports in the annual report and the annual information disclosure form so that management may recognize the commitment and responsibility to information and ųnancial reports, which must be accurate before being made available to the investors. In communicating externally, executive management who have been assigned the task of disclosing information about the Company are the President, the Chief Financial Ofųcer and Financial Director (Investor Relations). In 2013, the executive ofųcers, including the Financial Director (Investor Relations) met with and provided information at the following opportunities: 1. Road shows: 4 domestically, and 3 abroad (7 times in total) 2. Analyst Meetings: 4 times 3. Company Visits and Conference Calls: 187 times 4. Site Visits: 13 times Apart from the aforementioned instances, the Company provides information on the company, operating results, ųnancial statements, and news to the Stock Exchange of Thailand (SET). Interested persons may look up this information on the SET website www.set.or.th and the Company’s website www.bangkokhospital.com. For further information, investors and interested persons may contact the Financial Director (Investor Relations) by telephone at 0-2755-1793, e-mail: [email protected] or the company website www.bangkokhospital.com. Responsibilities of the Board of Directors and the SubCommittees Board of Directors The Board of Directors is comprised of 15 members, 5 of those being Executive Directors, 4 being Non- Executive Directors, and 6 Independent Directors. The Board of Directors believes that having 6 qualiųed and capable Independent Directors is a sufųcient number to balance and verify management. Executive Directors Executive Directors are directors who are involved full-time in the management of the Company and receive a monthly salary or other equal compensation from the Company. Non-Executive Directors Non-Executive Directors are directors who are not involved full-time in the management of the Company nor do they receive a monthly salary from the Company. These directors may be appointed or be representatives of major shareholders. Independent Directors Independent Directors are directors who are not involved in management of the Company, subsidiaries, associates or related companies with independent management, major shareholders nor have authority to take over the business. Furthermore, the Independent Directors must not have a business or be involved with the interests of the Company, 65 Corporate Governance

subsidiaries, associates or related companies, which may negatively affect the interests of the Company and/or shareholders. Qualiųcations of Independent Directors, which the Company has set according to regulations of the SEC, are as follows: 1. Holds less than 1.0 percent of the voting shares of the Company, its subsidiaries, associates or afųliates. This includes shares held by related persons of the individual independent directors. (Related persons meaning children as deųned in Article 258 of the Securities and Exchange Act.) 2. Is not/has not been an executive director, staff, employee, salaried advisor or person with controlling power of the Company, parent company, subsidiaries, associated companies, same level subsidiaries, major shareholders or persons with controlling power, unless that status has ended for no less than 2 years prior to the appointment. This restriction shall not apply to an independent director who has been a civil servant or an advisor to a government authority that is a major shareholder or controlling person of the Company. (Same level subsidiaries meaning subsidiary with the same parent company.) 3. Is not a blood relative of or has a legally registered relationship as father, mother, spouse, sibling and child, as well as spouse of child, with management, major shareholders with controlling power or individuals to be proposed as management or those having controlling power over the company or subsidiaries. 4. Does not have/has not had business relationship with the Company, parent company, subsidiaries, associated companies, major shareholders or persons with controlling power, in a way that may hinder one’s independent judgment. In addition, the individual must not be/have been a substantial shareholder or a person with controlling power of an entity that has a business relationship with the Company, parent company, subsidiaries, associated companies, major shareholders or persons with controlling power, unless that status has ended for no less than 2 years prior to the appointment. 5. Is not/has not been an auditor of the Company, parent company, subsidiaries, associated companies, major shareholders or persons with controlling power of the Company and is not a substantial shareholder, a person with controlling power or partner of an audit ųrm which employs auditors of the Company, parent company, subsidiaries, associated companies, major shareholders or persons with controlling power, unless that status has ended for no less than 2 years prior to the appointment. 6. Is not/has not been a professional advisor, which includes legal counsel and ųnancial advisor, who receives an annual service fee exceeding Baht 2 million from the Company, parent company, subsidiaries, associated companies, major shareholders or persons with controlling power and is not a substantial shareholder, a person with controlling power or partner of the professional advisor, unless that status has ended for no less than 2 years prior to the appointment. 7. Is not a director who has been appointed as a representative of the Company’s directors, major shareholders or a shareholder who is a related person to a major shareholder. 8. Not conducting any business which is of the same nature as or in material competition with that of the Company or its subsidiaries, nor be a substantial partner, executive director, staff, employee, salaried advisor, or hold more than 1% of total shares with voting rights of any company whose business is of the same nature as or in material competition with that of the Company or its subsidiaries. 9. Not posses any other characteristics which may render that person incapable of expressing independent opinions with regards to the Company’s operations. Independent Directors may be assigned by the Board of Directors to make decisions regarding operations of the Company, subsidiaries, associated companies, same level subsidiaries or juristic persons that pose a conŴict of interest through a collective decision. Separation of Positions 1. Presently, the Chairman of the Board of Directors does not participate in the management of the Company. Furthermore, the Company has stipulated that the Chairman and the President must not be the same person nor be a member of any sub-committee so that the Chairman may be independent from management and have the independence to make decisions and ensure that the directors carry out their responsibilities with transparency and without bias. The Chairman shall act fairly in using policy and active strategy in ensuring that Board meetings are held and that all directors participate and independently raise questions at each meeting. 2. The Company has determined that the Chairman of the Board must not be a member of the Nomination and Remuneration Committee so that the Committee shall be free to make decisions independent of the Board of Directors. Authority of Directors and Management are clearly deųned and separated The Company has clearly separated the responsibilities of the Board of Directors from that of management, whereby the Board of Directors shall determine the policy and ensure that management acts in accordance at the policy level. The Board of Directors shall meet regularly each month to monitor and support strategic policies of the Company. At the same time, 66 Corporate Governance

the Board of Directors shall not interfere with day-to-day operations or business activities under the responsibility of the President and management as only the President is assigned such tasks by the Board and the Executive Committee. Therefore, management efųciently responds to the power and responsibility of the President. Furthermore, the Company has clearly deųned the duties and authority of all levels of management. Term of Directorship In principal, directors should not serve for a long, continuous period of time. However, there is a shortage of persons with experience and knowledge and understanding of health care, as well as limitations in ųnding suitable replacements. In addition, we must take into consideration management risk that may occur because of lack of knowledge and understanding of health care, which is an important factor in selecting directors, especially in the healthcare business, which requires expertise and specialization in order to clearly understand the Company’s business. Therefore, the Company has not set any ofųcial limitations on the term of the directors. Duties of Directors Each director has the duty and responsibility to determine and monitor the operational policies of the Company, apart from the duties and responsibilities as stated in “Management Structure” on page 53 of the Annual Report, which include the following: 1. Directors should have sufųcient access to ųnancial information and other business information so that he/she may carryout duties efųciently. 2. Directors should attend every Board meeting as well as sub-committee meetings, and raise important questions to protect and maintain the rights and interests of the shareholders and stakeholders to ensure proper business conduct and operations. 3. Directors should attend every shareholders’ meeting, especially Directors who have been appointed to the Audit Committee, in order to answer and provide explanation to the shareholders’ queries, as well as acknowledge suggestions from the shareholders. 4. Directors should be capable and have the intention to learn about the Company’s business, as well as share opinions independently, devote time to the Company as needed and show interest in the important issues. 5. Independent Directors should submit a letter to the Company to conųrm that he/she is truly independent, according to the Company’s deųnition, on the day that he/she has accepted the appointment to the position and each year after such appointment. 6. Directors must submit and update their personal stake and report changes in securities held by him/her, his/her spouse as well as children under juristic age (if any) to show transparency and must report any changes to the Board of Directors’ meeting. 7. Any other duties of the Directors as stipulated in notiųcations, acts or laws governing the Company. Board of Directors Meetings and SubCommittee Meetings The Company has set the dates for the Board of Directors’ meetings and the Executive Committee Meetings in advance for the entire year and may have extra-ordinary meetings as deemed necessary. The regular Board of Directors’ meetings are to be held on the last Wednesday of each month with the Executive Committee meeting to be held on the Wednesday prior to the Board meeting and members of the Board and Executive Committee are made aware of these dates in advance so that they can arrange their schedules to accommodate the meetings. The agenda of each meeting will also be set in advance and will include continuing agendas to follow up on any assignments from prior meetings. The Company Secretary shall send meeting invitations and the agenda at least 7 business days in advance of each meeting in order to allow directors sufųcient time to review the information prior to attending the meeting. The meetings of the Audit Committee and the Nomination and Remuneration Committee are not set in advance. However, the meetings of the two sub-committees are held as deemed appropriate and when opportunity allows in order to accomplish the duties assigned. After the sub-committee meetings, the Chairman of the committees or an appointed representative shall report the result of the meeting to the Board of Directors at the subsequent Board meeting. The Company has disclosed attendance at the Board of Directors’ Meeting and the Sub-Committee Meetings in the section titled “Management Structure” on page 52 of this annual report. Determining Remuneration for Directors and Executives Presently, the Company has appointed the Nomination and Remuneration Committee the task of justly determining the remuneration of directors to correspond to the directors’ duties and responsibilities by comparing to those of leading companies listed on the Stock Exchange of Thailand and those companies of similar size in the same industry. In addition, the remuneration must be in-line with the Company’s operational results and must be approved by the Shareholders’Meeting. 67 Corporate Governance

As for remuneration of executives, the Company will award remuneration by performance evaluation as stated in the guidelines deųned by the Board of Directors and the Human Resources Department for each level of management. The performance is linked to the operational results of the Company and individual accomplishments. Directors’ Knowledge Enhancement The Company has the policy to encourage directors of the Company and subsidiaries to attend the Director Certiųcate Program (DCP) and the Director Accreditation Program (DAP) organized by the Thai Institute of Directors (IOD). The programs will provide the directors with knowledge and understanding of efųcient corporate governance and will enable them to use the knowledge for continuous good corporate governance. Fifteen of the directors have attended and passed the Director Certiųcate Program and/or the Director Accreditation Program. The Company also encourages directors to attend training courses on amendments and updates of the regulations, policies and guidelines of the Stock Exchange and the SEC. The Company has assigned the Company Secretary the task of summarizing signiųcant changes to the regulations or guidelines to the President for further reporting to the Board of Directors for their acknowledgement and practice. In some cases, the Company may invite experts in speciųc ųelds to present such information or guidelines to the Board of Directors for their acknowledgement and practice. In conjunction, the Company also supported the Company Secretary’s attendance in the Director Certiųcate Program in 2012

2. Sub-Committees The Board of Directors resolved to appoint three sub-committees, namely, the Audit Committee, the Nomination and Remuneration Committee and the Executive Committee, to assist in ensuring corporate governance, internal control and to ųlter issues. The Board has also clearly separated the duties of each committee by prescribing the responsibilities in the respective committee’s charter. 2.1 Audit Committee The Committee is comprised of three independent directors and each member serves for a term of three years. The Audit Committee members are as follows: 1. Professor Emeritus Santasiri Sornmani, M.D. Chairman of the Audit Committee 2. Mr. Somchai Sujjapongse, Ph.D. Audit Committee Member 3. Mr. Sripop Sarasas Audit Committee Member The Audit Committee is granted full authority by the Board of Directors to carry out its duties, which include systematic monitoring of business practices, ensuring efųcient and strict internal control measures, ensuring compliance with laws on disclosure and determining risk management dealing with the business and ųnances of the Company. Presently, two of the Audit Committee members are knowledgeable and have direct experience in accounting and ųnance, namely, Mr. Sripop Sarasas and Mr. Somchai Sujjapongse, Ph.D. In planning internal audits, the Audit Committee will have the internal audit ofųcers plan the audit of the Company for the entire year. The Company has hired an external company, which is licensed and suitably qualiųed to carry out the internal audit. We believe that internal audit by external auditors will result in just and efųcient reporting of the facts as they have independence and Ŵexibility. The Audit Committee will report the activities of the internal auditors at the Board of Directors’ meeting immediately after each meeting. At Audit Committee meetings that deal with the ųnancial statements and disclosure of ųnancial reports of the Company, the Chief Financial Ofųcer and the Accounting Director will both be in attendance. Prior to meetings on the ųnancial statements with management, the Audit Committee shall meet with the accounting auditors separately, without management, to enquire about the important risks that may occur from the ųnancial statements or the ųnancial status or limitations, which the auditor has found in the process of auditing the ųnancial statements of the Company and subsidiaries. This is to ensure that auditors are able to act independently without impediments in auditing the Company. Qualiųcations of the Audit Committee The Audit Committee must be comprised of Independent Directors appointed by the Shareholders’ Meeting or the Board of Directors’ Meeting. The Independent Directors must have the following qualiųcations as prescribed by the Securities and Exchange Commission: 1. Shall not hold shares exceeding 1.0% of the total number of voting shares of the Company, its parent company, subsidiary, associate, or juristic person that may have conŴict of interest, including shares held by related persons of such independent director. (Related persons means persons according to Clause 258 of the Securities and Exchange Act.) 68 Corporate Governance

2. Shall neither be nor have ever been a director with management authority, employee, staff member, advisor who receives a salary or is a controlling person of the Company, its parent company, subsidiary, associate, same-tier subsidiary company, major shareholder or controlling person unless the foregoing status has ended not less than two years prior to the date of becoming a director. Such prohibitions shall not, however, include cases where the Independent Director previously served as a government ofųcer or an advisor to a government agency which is a major shareholder or controlling person of the Company. (Same-tier subsidiary company means subsidiaries with the same parent company.) 3. Shall not be a person related by blood or legal registration as father, mother, spouse, sibling, or child, including spouse of child of other directors, of an executive, major shareholder, controlling person, or person to be nominated as director, executive or controlling person of the Company or its subsidiary. 4. Shall neither have nor have ever had a business relationship with the Company, its parent company, subsidiary, associate, major shareholder or controlling person, in a manner that may interfere with his/her independent judgment, and neither is nor has ever been a signiųcant shareholder or controlling person of any person having a business relationship with the Company, its parent company, subsidiary, associate, major shareholder or controlling person, unless the foregoing relationship has ended not less than two years prior to the date of becoming an independent director. 5. Shall not be nor have ever been an auditor of the Company, its parent company, subsidiary, associate, major shareholder or controlling person, and not be a signiųcant shareholder, controlling person, or partner of an audit ųrm which employs auditors of the Company, its parent company, subsidiary, associate, major shareholder or controlling person, unless the foregoing relationship has ended not less than two years prior to the date of becoming an independent director. 6. Shall not be nor have ever been a provider of any professional services including legal advisor or ųnancial advisor who receives service fees exceeding Baht 2 Million per year from the Company, its parent company, subsidiary, associate, major shareholder or controlling person, and not be a signiųcant shareholder, controlling person or partner of the provider of professional services, unless the foregoing relationship has ended not less than two years prior to the date of becoming an independent director. 7. Shall not be a director appointed as representative of the Board of Directors, major shareholder or shareholder who is related to a major shareholder of the Company. 8. Apart from not undertaking any business in the same nature and in competition with the business of the Company or its subsidiary, the Independent Director must also not be an employee, staff member or advisor who receives salary or holds shares exceeding 1% of the total number of shares with voting rights of another company which undertakes business in the same nature and in competition with the business of the Company or its subsidiary. 9. Shall not have any other characteristic that limits his or her ability to express independent opinions regarding the Company’s operations. The Independent Director may be assigned by the Board of Directors to make decisions relating to business operations of the Company, its parent company, subsidiary, associate, same-tier subsidiary or any juristic person with a conŴict of inter- est on the basis of collective decision. Apart from the aforementioned qualiųcations of the Independent Director, the Audit Committee Member shall possess the following additional qualiųcations: 1. Shall not be a Director who has been assigned by the Board of Directors to make decisions regarding operations of the Company, parent company, subsidiary, associate, same-tier subsidiary or juristic persons with conŴict of interest. 2. Shall possess knowledge and experience as well as be able to dedicate sufųcient time to carry out the duties as assigned. 3. Shall not be an Audit Committee Member at any other company listed on the Stock Exchange of Thailand, which is in the same business or industry nor be an Audit Committee Member of more than ųve other companies listed on the Stock Exchange of Thailand as it may affect the Director’s ability to fully carry out his/her duty. The following are not considered to have an impact on the Audit Committee Members’ ability to carry out their duties or to provide independent opinion: 1. Transactions between the Audit Committee Member or related persons and the Company, subsidiary, associate or major shareholder of the Company regarding purchase or sales of products or services under the following conditions: 1) The purchase or sale of such products or services is transacted under normal business and generally accepted conditions with clearly deųned and disclosed guidelines. 2) The prices of the products or services are comparable to those offered to other customers. 2. Connected transactions which have been carried out in accordance with the related notiųcations of the Stock Exchange of Thailand. 69 Corporate Governance

3. Other transactions which have been carried out in accordance with the laws, regulations or notiųcations of the Stock Exchange of Thailand and under the responsibility of the Audit Committee to assist the Committee in carrying out their duties in ensuring the accuracy of the ųnancial reports, the efųciency of the internal audit system and compliance with laws, regulations and ethics as well as to promote good corporate governance. Scope of Duties and Responsibilities of the Audit Committee To enable the Audit Committee to carry out their duties as assigned by the Board of Directors, the Company has deųned the duties and responsibilities of the Audit Committee as follows: 1. Ensure that the Company abides by the laws governing securities and exchange, regulations of the Stock Exchange of Thailand and laws related to the Company’s business. 2. Ensure that the Company reports and discloses information in the ųnancial statements accurately, completely and reliably by coordinating with the external auditor and management in charge of preparing ųnancial statements at the periods prescribed by the Stock Exchange of Thailand, applicable laws and government agencies. 3. Select and nominate the auditor and the auditor’s annual remuneration to the Board of Directors for further approval by the Shareholders’ Meeting. 4. Ensure that there is a process for employees to notify of any unsuitable items in the ųnancial statements, including other matters, as well as provide the whistleblower with the conųdence that there is an independent process of investigation and suitable monitoring. 5. Ensure that the Company has suitable and efųcient Internal Control and Internal Audit systems by reviewing the systems with both the internal and external auditors. The Audit Committee shall consider the independence of the internal auditor department. 6. Review evidence of the internal investigations when there is doubt or assumptions that there has been fraud or irregularities or signiųcant defect in the internal control system and report such ųndings to the Board of Directors for further consideration. 7. Delegate and review the evidence if there is suspicion that a law or regulation of the Stock Exchange of Thailand has been violated, which has or may have a signiųcant impact on the Company’s ųnancial status or performance. 8. Employ or engage a specialist to support auditing and investigations, by following the Company’s guidelines on employment and engagement, in the case that the Audit Committee ųnds or suspects that there is a transaction or action that may signiųcantly impact the Company’s ųnancial status or performance. Such employment or engagement shall be paid by the Company. 9. In the case that the Company has its own Internal Audit Department, the Audit Committee has the authority to approve the appointment, transfer or termination as well as the authority to evaluate the performance of the Head of the Internal Audit Department. However, if the Company engages an external auditor to conduct the internal audit, the Audit Committee has the authority to approve the appointment and remuneration of such engagement. 10. Ensure that the Company has suitable risk management and controls, encompassing the entire organization as well as suggest appropriate and efųcient management of risks associated with the Company’s business. 11. Review the risk management report and monitor important risk factors as well as present to the Board of Directors the report on the sufųciency of the system and risk controls. 12. Ensure that conŴicts of interest do not arise by reviewing connected transactions between the Company or subsidiaries and connected persons to ensure that they are in compliance with the laws and regulations of the Stock Exchange of Thailand. 13. Prepare the report of the Audit Committee and disclose in the Company’s annual report, such report shall include details as prescribed by the notiųcations of the Stock Exchange of Thailand and other related regulations. 14. Review the Audit Committee’s charter annually to ensure that the charter, at the minimum, includes details on the scope of the duties of the Committee as prescribed by the regulations of the Stock Exchange of Thailand regarding the qualiųcations and scope of duties and responsibilities of the Audit Committee. The charter must also include sufųcient guidelines to support the duties of the Audit Committee, such as the employment of a specialist to provide an opinion that requires expertise with expenses paid by the Company. In the case that the Audit Committee deems it necessary to amend the charter to suit the guidelines, regulations or circumstances that have changed, the Audit Committee shall propose such changes to the Board of Directors for further approval. 15. Perform other actions as assigned by the Board of Directors. 2.2 Nomination and Remuneration Committee In order to comply with good corporate governance of listed companies, the Board of Directors passed a resolution to appoint the Nomination and Remuneration Committee. The Committee must be mainly comprised of Independent Directors 70 Corporate Governance

and serve for a term of three years. The Committee has the duty to seek qualiųed candidates for nomination as directors of the Company for both replacements of directors who have retired and new director positions, as well as the Chief Executive Ofųcer and the President. Furthermore, the Committee shall set the guidelines to determine appropriate remuneration for the Board of Directors, sub-committee members, and the Chief Executive Ofųcer and President. The Nomination and Remuneration Committee is comprised of the following: 1. Professor Emeritus Santasiri Sornmani, M.D. Chairman of Committee 2. Mr. Chuladej Yossundharakul, M.D. Member 3. Mr. Chawalit Setthmethikul Member 4. Mr. Somchai Sujjapongse, Ph.D. Member 5. Mr. Sripop Sarasas Member Scope of Duties and Responsibilities of the Nomination and Remuneration Committee 1. Specify the qualiųcations, the method and process in selecting candidates, as well as identify qualiųed candidates for directorship and propose those candidates to the Board of Directors for consideration of further proposal to the Shareholders’ Meeting for resolution. 2. Consider the format, guidelines and rate of remuneration of the sub-committees for consideration by the Board of Directors before presenting to the Shareholders’ Meeting for resolution. Such format, guidelines and rate of remuneration, shall be concise, transparent, fair and consistent with the responsibilities and performance, which will motivate and retain qualiųed directors with potential. 3. Specify the qualiųcations, the method and process in selecting candidates for the position of Chief Executive Ofųcer and President, as well as identify a qualiųed candidate and propose the appointment of the candidate to the Board of Directors for approval. 4. Consider the format, guidelines and rate of remuneration of the Chief Executive Ofųcer and President, and propose to the Board of Directors for approval. Such format, guidelines and rate of remuneration, shall be concise, transparent, fair and consistent with the responsibilities and performance. 5. Prepare guidelines and method in assessing the performance of the Chief Executive Ofųcer and President for approval by the Board of Directors. 6. Assess the performance of the Chief Executive Ofųcer and President according to the guidelines approved by the Board of Directors and consider the annual remuneration from the results of the assessment, and then propose to the Board of Directors or approval. 7. Prepare the succession plan for the position of Chief Executive Ofųcer and President and propose to the Board of Directors for approval. 8. Review the Nomination and Remuneration Committee’s charter annually and in the case that the Committee deems it necessary to amend the charter to suit the guidelines, regulations or circumstances that have changed, the Nomination and Remuneration Committee shall propose such changes to the Board of Directors for further approval. 9. Perform other actions as assigned by the Board of Directors. 2.3 Executive Committee In order to ensure that the Company follows the strategy, goals and plans set for the year, the Board of Directors made the decision to appoint the Executive Committee. The Committee is comprised of 5 executive directors and has the responsibility to supervise and ensure that the Company and its subsidiaries act in accordance with the set plans. In addition, the Executive Committee shall consider reports by management that are to be presented to the Board of Directors as well as have the authority to approve normal business transactions or transactions that support normal business activities of the Company within a given monetary limit. The approval authority of the Executive Committee cannot be used with persons that may have conŴict of interest, stake or any other forms of conŴict with the Company or subsidiaries. Such authority also does not include connected transactions and purchase/sale of important assets of the listed Company in accordance with the rules and regulations of the Stock Exchange of Thailand or other related regulations. The Company must act in accordance with the rules and regulations of the Stock Exchange of Thailand or other related regulations on such particular matter. Moreover, the approval authority of the Executive Committee does not include other matters which require approval from the Shareholders’ Meeting as stated in the Articles of the Company. The Executive Committee is comprised of ųve members as follows: 1. Mr. Prasert Prasarttong-Osoth, M.D. Chairman 2. Mr. Chuladej Yossundharakul, M.D. Vice Chairman 3. Mr. Chatree Duangnet, M.D. Member 4. Mr. Pradit Theekakul Member 5. Mr. Thongchai Jira-alongkorn Member 71 Corporate Governance

Scope of Duties and Responsibilities of the Executive Committee 1. Determine the vision, direction of the business, policies and strategies of the Company for further approval by the Board of Directors. 2. Review the business plan, budget plan, annual costs, investment plan and Corporate Social Responsibility (CSR) plan of the Company in accordance with the deųned policies and strategies and propose to the Board of Directors for approval. 3. Ensure good corporate governance in accordance with the determined plans as well as ensure compliance with related laws, regulations and guidelines of the various agencies as well as the articles of the Company. 4. Consider the summary of the Company’s operations and present to the Board of Directors for acknowledgement each quarter. 5. Approve investments and operational expenses under the authority assigned by the Board of Directors. 6. Approve or review the loan limit to subsidiaries under the authority assigned by the Board of Directors. 7. Ensure that the Company has suitable and succinct internal audit system as well as risk management and control system, which are both in accordance with the suggestions and comments of the Audit Committee. 8. Screen and review the organizational structure and scope of duties and responsibilities of the high level personnel for approval by the Board of Directors. 9. Approve the succession plan of the Hospital Director or equivalent up to the position of the Chief Executive Ofųcer or equivalent. 10. Approve the appointment, transfer or termination of management at the level of the Senior Manangement or equivalent. The Executive Committee shall also approve the candidates for nomination as representatives of the Company to the Board of Directors of subsidiaries so that the subsidiaries may further nominate those candidates through the approval process as stipulated by the laws or regualtions and the articles governing each company. 11. Screen and review the pay scale and guidelines in the Company’s and subsidiaries’ annual salary adjustment for further approval by the Board of Directors. (This does not include the positions of the Chief Executive Ofųcer and President.) 12. Appoint working teams to improve and/or solve various problems that may occur in accordance with the Company’s polic ies. 13. Review the Executive Committee’s charter annually and in the case that the Committee deems it necessary to amend the charter to suit the guidelines, regulations or circumstances that have changed, the Executive Committee shall propose such changes to the Board of Directors for further approval. 14. Perform other actions as assigned by the Board of Directors. The above authority, duties and responsibilities may not be used with persons who may have a conŴict, a stake or any other conŴict of interest with the Company or subsidiaries. Nor do they include connected transactions or purchase and sale of important assets of the listed company in accordance with the regulations of the Stock Exchange of Thailand or other related notiųcations. In this regard, the Company shall act in accordance with the rules and regulations of the Stock Exchange of Thailand or other notiųcations relating to that particular matter. Furthermore, the above authority, duties and responsibilities do not include other matters in which the articles of the Company stipulate that a resolution of the Shareholders’ Meeting is required 3. The Nomination and Appointment of Directors and Executive Management 3.1 Nomination of Directors and Independent Directors The Nomination and Remuneration Committee has the duty to nominate persons to become directors to replace those who are retired by rotation, to replace vacant positions or to new Director positions by selecting those with suitable qualiųcations. The Committee will then propose those candidates to the Board of Directors for approval (in the case of appointment of a new Director to replace a vacant position) or to the Board of Directors for consideration of further proposal to the Shareholders’ Meeting for resolution. As no less than one third of the Board of Directors must be comprised of Independent Directors, the Company’s process in nominating Independent Directors will be the same as the process in nominating directors. However, the Company has determined additional qualiųcations for Independent Directors, which are consistent with the rules of the Ofųce of the Securities and Exchange Commission as mentioned in the section “Sub-Committees” on page 55 of the annual report. Guidelines and Method in Selecting Candidates for Nomination as Directors The Nomination and Remuneration Committee will select suitable candidates by considering the following: 1. Knowledgeable and capable individuals with a clean work history, as well as being an expert in areas needed for the Board Matrix so that the Board of Directors may be able to set appropriate policies and strategies. 2. Possess integrity and accountability. 3. Can make decisions professionally and reasonably with the information provided. 72 Corporate Governance . lls ų 73 lling those ų lled. If the votes cast for the candidates lled. If the votes cast for the candidates ų cations: ų ll any important position that should become vacant. ų ll all of the vacant director positions. Such meeting shall be held within one month from the ll all of the vacant director positions. Such meeting shall be held within one month ų ed individual, who is not legally ineligible to the position at the subsequent meeting of the Board ed individual, who is not legally ineligible to the position at the subsequent meeting ll the vacant position shall be no less than three quarters of the remaining directors. ll the vacant position shall be no less than three quarters of the remaining directors. red or terminated from civil service or government agency for malfeasance red or terminated from civil service or government ų ų ų cations as stated in the Board of Directors’ charter as well as in the related laws, rules and regulations as in the related laws, rules and regulations the Board of Directors’ charter as well cations as stated in led for bankruptcy, is not incompetent or near incompetent led for bankruptcy, is not incompetent ų ed or be legally ineligible ų ų of shares attending the meeting with the right to vote and with total number of shares of no less than half of the of shares attending the meeting with the attending the meeting with the right to vote. total number of shares held by the shareholders Court ordered resignation Death resignation Voluntary Unquali Has never been imprisoned or received sentence of imprisonment for wrongful acquisition of assets Has never been imprisoned or received Has never been Be of legal age Has not Shareholders’ Meeting passes a resolution for the removal of a director with no less than three quarters of the number Shareholders’ Meeting passes a resolution Ļ from the day the Company receives said letter. shall select a quali In this case, the director who of Directors, unless the term of the vacant director position is less than two months. cannot be divided by three, then the closest number to one third of the directors shall resign. Directors who have cannot be divided by three, then the closest as director. resigned by rotation may be re-elected Ļ Ļ Ļ Ļ of Directors’ vote for the appointment the vacant position shall serve only until the end of the remaining term. The Board of the director to a shareholders’ meeting to remaining directors shall act in the name of the Board of Directors only in organizing elect individuals to held the position. vacant positions shall serve only the remaining term of the director who previously Ļ Ļ Ļ Ļ Those individuals date that the number of vacant director positions exceeds the required quorum. of more than one Director, the votes cannot be split to any one person. the votes cannot be split to any of more than one Director, until all of the director positions are be appointed as directors in that order in descending order are tied, which would otherwise cause the number of directors to be exceeded, the Chairman of in descending order are tied, which would the Meeting shall cast the deciding vote. of a Director shall be as stated in the Company’s articles as follows: Furthermore, the appointment and removal 1) than one half shall have residence in Thailand The Board of Directors shall be comprised of at least 5 directors and no less following quali 2) Directors shall be individuals with the and such resignation will be effective 5) Any director who wishes to resign may submit a letter of resignation to the Company by rotation, the Board of Directors 6) If a director position should become vacant due to reasons other than the resignation 3) At each annual general meeting, at least one third of the directors shall resign by rotation. If the number of directors 3) At each annual general meeting, at least may be removed in the following events: 4) Apart from resignation by rotation, directors required quorum cannot be met, the 7) In the case that there is a large number of vacant director positions and the of the governing agencies. of the governing agencies. 4. Possess maturity, leadership skills and vision. 4. Possess maturity, 5. Possess quali number of shares owned. has the number of votes equal to the 1. Any one shareholder the case of election stated in 1. to elect an individual(s). In shall use all his/her rights to vote as 2. Each shareholder order from the highest number of votes received to the lowest, and shall 3. The candidates shall be ranked in descending In nominating directors to replace those who have retired by rotation or for new directorship positions, such candidates rotation or for new directorship positions, to replace those who have retired by In nominating directors 3.2 Nominations of Executive Management good, capable individuals with an attitude The process of nominating executive management begins from the selection of Furthermore, in past nominations of directors at the Shareholders’ Meeting, the Company had determined the method in Furthermore, in past nominations of directors at the Shareholders’ Meeting, the must be approved by the Shareholders’ Meeting resolution. Such resolutions shall comply with the following: Such resolutions shall comply with the the Shareholders’ Meeting resolution. must be approved by that suits the organization. The Company focuses on the new generation with the potential, knowledge and competence to that suits the organization. The Company focuses on the new generation with the have the potential to climb up to top level develop and prepare for the opportunity to grow. The individual should also to develop the individual’s skills and management through evaluation by the Human Resources Department. In order important tasks and rotated among the knowledge of all aspects within the organization, the individual shall be assigned different departments to ready him/her to voting whereby the shareholders shall vote for directors individually in accordance with good corporate governance. voting whereby the shareholders shall vote for directors individually in accordance Corporate Governance

In the case of the top executive management position in the organization (President), the Board of Directors has assigned the Nomination and Remuneration Committee the responsibility of determining the guidelines as well as the qualiųcations of the suitable candidate and presenting the guidelines to the Board of Directors for appointment of the position. Apart from the qualiųcations in terms of knowledge and capabilities, whereby the Nomination and Remuneration Committee may consider executive management within the organization or may engage an external advisor to select qualiųed candidates, the President shall also be a member of the Board of Directors. Therefore, the candidate whom the Nomination and Remuneration Committee believes is qualiųed and suitable for nomination to the position of the President, must have the suitable qualiųcations and be appointed as a director on the Board by the Shareholders’ Meeting before assuming the position of President. 4. Governance of Subsidiaries Maintaining Shareholder Rights In governing the subsidiaries and associated companies, the Company as a shareholder has the same rights as other shareholders, such as the right to attend meetings and the right to vote. Therefore, the Company has the policy to appoint a representative to attend the Shareholders’ Meeting. The Company’s representative has the right to vote on important agendas at the Shareholders’ Meeting such as capital decrease, rights offering, approval of the balance sheet, and approval of management structure. In this regard, the Company’s representative shall vote according to the guidelines given by the President on behalf of the Company or the representative may ask the Executive Committee or the Board of Directors for guidelines and approval of the vote in the case of crucial agendas prior to the Shareholders’ Meeting. Nominating Representative(s) as Director of a Subsidiary Company The Company shall appoint representatives as directors of the subsidiaries companies. The Board of Directors has assigned the Executive Committee the task of determining the individuals who have the qualiųcations suitable for that particular business to represent the Company on the Board of Directors of the subsidiaries companies. The representative has the duty to act for the beneųt and in accordance with the articles of that subsidiary company, which will be advantageous to the Company as a shareholder. At the same time, the Company has determined the policy that states that voting as a director of subsidiaries companies on important agendas at the Shareholders’ Meeting such as capital decrease, rights offering, approval of the balance sheet, approval of management structure and entering various transactions as stipulated in the Securities and Exchange Act, shall be in accordance with the guidelines set by the Executive Committee or the Board of Directors of the Company (as the case may be). The voting shall also be consistent with good corporate governance. In appointing representatives as directors of subsidiaries companies, the representation shall correspond with the ratio of shares held by the Company. Furthermore, in the case of subsidiaries, the Company has set the rule that individuals appointed by the Company shall make certain that the subsidiaries have regulations on connected transactions, purchase or sale of assets or any other important transactions to ensure completeness and accuracy as well as disclosure of such information consistent with the Company’s own regulations. In addition, the representative shall also ensure that accounting records are kept and are accessible for the Company to review and collect for preparation of the consolidated ųnancial statements within the given time period. Group’s Central Accounting and Finance Policy Presently, the Company has determined that all subsidiaries shall abide by the Central Accounting and Finance Policy. This is to ensure that each subsidiary has an accounting policy, as well as accurate and timely reporting and disclosure of ųnancial information in accordance with the rules of the regulating agency and related regulations. 5. Controlling Use of Insider Information The Board of Directors approved the policy on controlling the use of insider information to determine guidelines in disclosing and preventing transactions that may cause conŴict of interest, including the misuse of insider information. The guidelines are as follows: 1. Prepare the Company’s ethics manual as well as employee ethics, which cover conŴicts of interest, information disclosure, and prohibition of the use of or beneųt from insider information or disclosure of insider information for personal gain or others’ beneųt. The guidelines also state the policy on treatment of stakeholders with regards to shareholders’ rights and maintaining privacy of customers. These guidelines are communicated to related persons for acknowledgment and general practice. 2. Determine the Quiet Period when the directors and management of the Company are not allowed to buy or sell the Company’s securities for a period of 14 days before the announcement of the quarterly ųnancial statement and the annual ųnancial statement. The Quiet Period is stated in the Company’s policy on information disclosure. 74 Corporate Governance

3. Disclosure of securities held by the directors and management (as deųned in the Securities and Exchange Act and/or the Notiųcation of the Capital Market Supervisory Board) whereby the directors and management are required to report the purchase and sale of Company’s securities within one month from the date of ųrst appointment to the position and within three business days after any changes to the Ofųce of the Securities and Exchange Commission. The directors and management shall also report securities held or any changes to the Company Secretary so that the Company Secretary may gather reports on the changes in ownership of the Company’s securities and include them in the agenda of the next Board of Directors’ Meeting for acknowledgement. 4. In reporting any stake or interest, the Company has speciųed that the directors and management shall report one’s stake or that of a related person to the Company Secretary as well as report any changes in such stakes. The Company Secretary then has the duty to ųle the reports and report any changes to the Chairman of the Board and the Board of Directors’ Meeting in accordance with the Securities and Exchange Act B.E. 2535. The Company shall use the information to control transactions between the Company and directors or management and/or persons related to the aforementioned as required by law. 5. The Company has determined the procedures and punishments when it is discovered that there has been misuse of insider information for personal gain, which is in accordance with the rules, regulations and policies on the use of insider information posted on the Company’s website. 6. Anti-Corruption The Company has the policy to conduct business with virtue and social responsibility. The Board of Directors has approved the policy on anti- corruption, which has been communicated to personnel within the Company, subsidiaries and associated companies for acknowledgment and practice. The policy has also been posted on the Company’s website. In the past, the Company has carried out the aforementioned policy to prevent fraud and corruption, which can be summarized as follows: 1. The Company has provided guidelines on assessing the operational risk and on ranking the risks that may occur for the planning of internal auditing and risk management. 2. Guidelines are provided on the control and prevention of any risks that may occur by determining the principals and regulations on procurement, reimbursement, budget approval, charitable donations, entertaining guests or giving gifts. In addition, the guidelines specify that there shall be an internal control system in ųnance, accounting, date recording as well as other internal processes related to accounting and ųnance to ensure conųdence that the ųnancial transactions are consistent with the approved objectives and that the business is transparent. 3. The Company has communicated the policy on anti-cirruption to the various departments within the Company, the subsidiaries and the associated companies through various channels, namely, employee training, intranet and the Company’s website for the acknowledgement and practice of related persons. 4. The Audit Committee has the duty to ensure that the Company has sufųcient good corporate governance, consistent with the policy set. 5. The Company has provided channels to report any violations or unlawful acts or ethical misconduct or fraudulent or corrupt behavior. In addition, the Company has set the Whistleblower Policy to protect and alleviate any damages to the whistleblower or petitioner or persons cooperating in the reporting of such acts.

75 Internal Control Internal Control

The Company recognizes the importance of the internal control system as it is one of the signiųcant factors in preventing losses to the Company. The internal control system can also lessen any damages that may occur as well as being a tool that ensures efųcient management of the Company. Therefore, the Board of Directors has stipulated that the Company shall have in place an internal control system in various areas such as procurement, approval of disbursement of expense of the Human Resource Department, purchase/sale of medical equipment, as well as monitor the changes and adjustments that were noted in the previous audit to ensure that management of all areas are transparent. To this end, the Company with approval of the Audit Committee has appointed Accounting Revolution Company Limited, an external company which has experience and qualiųcations, as the Internal Audit. In turn, Accounting Revolution Company Limited appointed Mrs. Sasivimol Suksai as the main person to carry out the duties of the Internal Auditor. The Audit Committee has reviewed the qualiųcations of both Accounting Revolution Company Limited and Mrs. Sasivimol Suksai and is of the opinion that they are qualiųed and suitable for the said position as they have experience in governance and internal auditing, they are independent and have the personnel suitable for the position of the Company’s Internal Audit. With these qualiųcations and capabilities, they are able to independently audit the various departments within the Company according to the internal control assessment guidelines determined by the Securities and Exchange Commission as well as report to the Audit Committee to ensure that the Company has standardized internal controls that are efųcient in preventing risks that may occur. The proųle and experience of the aforementioned Internal Audit Team is as follows: Head of Audit Team Mrs. Sasivimol Suksai, Managing Director, Accounting Revolution Company Limited Education: Ļ March, 1993 MBA: Master degree of Business Administration, Chulalongkorn University Ļ March, 1988 BBA: Major in Accounting, Thammasat University Work Experience Ļ 1988 - 1991 Assistant Auditor, Ofųce of SGV Arthur Andersen (Currently KPMG Audit) Ļ 1991 - 1996 Director, VSP Consultants Company Limited (provides auditing services) Ļ 1996 - 2002 Director, CAS Company Limited (provides auditing services) Ļ 2002 - 2006 Director, Auditor, Thana Ake Advisory Company Limited (provides auditing services) Ļ 2006 - present Director, Accounting Revolution Company Limited Other Qualiųcations Ļ Licensed Auditor in Thailand Ļ Special Lecturer, Dhurakij Pundit University Ļ Special Lecturer, Eastern Asia University The objective of the internal audit is to support the various departments within the organization in carrying out their duties and responsibilities with transparency and effective risk management, as well as control and ensure that the operations of the subsidiaries suit the framework that has been put in place. The Internal Audit shall gather information on the functions of the various departments, analyze, assess and provide advice and suggestions to the Company and report directly to the Audit Committee. The Audit Committee believes that the Internal Audit has been carried out efųciently and meets the goals and corporate governance principles of the Company as well as sufųciently enables the mitigation of risks that may arise. At the Board of Directors’ meeting 1/2014 held on 29th January 2014, attended by 8 Directors who are also part of management as well as Directors from outside the Company, and 4 Independent Directors, which included 2 members of the Audit Committee, the Board of Directors reviewed the assessment of the adequacy of the internal audit system in ųve aspects, namely, Organization and Environment, Risk Management, Control of Management Duties, Information Technology and Communication, and Monitoring System. The Board of Directors believes that the Company has sufųcient internal controls, which suit the current business conditions, transparency and good corporate governance that can be veriųed. 76 Report of the Audit Committee Report of the Audit Committee

Dear Shareholders of Bangkok Dusit Medical Services Public Company Limited, The Board of Directors of Bangkok Dusit Medical Services Public Company Limited appointed the Audit Committee, which is comprised of 3 independent directors, namely Professor (Emeritus) Santasiri Sornmani, M.D. as Chairman of the Audit Committee and Mr. Sripop Sarasas and Dr. Somchai Sujjapongse as members of the Committee. The main duties and responsibilities of the Audit Committee are to ensure that the Company’s ųnancial statements are in accordance with accounting standards and have accurate and sufųcient disclosure, ensure that the Company has an internal control system that assesses the risks and ensures suitable and efųcient risk controls, ensure compliance with related regulations and laws, as well as mitigate conŴicts of interest between the Company and related persons. In 2013, the Audit Committee held a total of 8 meetings to carry out duties as assigned, the most important being: 1. Review the ųnancial statements of the Company and subsidiaries before presentation to the Board of Directors, as reviewed and explained by the auditor and executive management. The Audit Committee is of the opinion and belief that the aforementioned ųnancial statements were prepared according to accounting standards with accurate and complete disclosure of important facts. 2. Consider and nominate the auditor from EY Ofųce Limited. (formerly known as Ernst & Young Ofųce Company Limited) and the annual auditing fee to the Board of Directors for further approval by the Shareholders’ Meeting. The Audit Committee is of the opinion that the person nominated as the auditor is qualiųed in terms of knowledge, capability and is sufųciently independent from the Company and subsidiaries. 3. Consider the appointed of Account Revolution Company Limited, a qualiųed and experienced external company, as the Internal Audit. The Internal Audit was evaluated based on the team, sufųcient number of staff, experience, knowledge and capabilities, as well as independency, to carry out audits of the various departments within the Company according to the guidelines for assessment of the sufųciency of the internal control system. 4. Consider transactions with connected persons, disclosure of transactions with connected persons and ensure that acquisitions or sales of assets are in compliance with applicable laws and regulations. 5. Consider approving the annual audit plan, review internal audit procedures, which are a part of the Company’s management policy, and provide written approval on the internal audit process to be used as a guideline according to international standards. 6. Consider and hear the internal audit report and explanation from the internal auditor, which is an internal audit company appointed with the approval of the Audit Committee. The internal auditors carried out the audit according to the importance of the risks as assessed. The Audit Committee provided suggestions to the Board of Directors and executive management on good corporate governance and internal controls. In addition, the Committee gave importance to suitable arrangement of the Shareholders’ meeting according to the guidelines of the Stock Exchange of Thailand, compliance with laws, regulations and practices, and efųciency in risk evaluation and risk mitigation of the various departments and the organization. 7. Review and assess the sufųciency of the internal control systems annually. The Committee is of the opinion that the internal control system is suitable and sufųcient in risk mitigation in accordance with the policies and strategies of the Company. 8. Confer with the auditor without management so that the auditor can freely report on any problems or limitations as a result of the audit. The auditor has reported that there were no limitations of signiųcance. The Audit Committee has carried out the duties as assigned with care and to the best of our ability for the beneųt of the Company, the Shareholders and all stakeholders.

Professor (Emeritus) Santasiri Sornmani, M.D. Chairman of the Audit Committee 77 Connected Transactions Connected Transactions ce of the ų y all over the Thailand, equipment Ŵ Reason and Necessity ce space to Bangkok Helicopter Services Company Limited, an associated ų ce of the SEC’s list appraisers. ų ight in all kinds of weather conditions as well at night (glass cockpit), special medical Ŵ nancial cost. ų The Company cannot own a helicopter due to the legal limitations in air transport. Payment for air transport and patient transfer by under the service agreement between Company 1.1 Selling of land not used in operations and decrease assets which do contribute to the Company’s revenue. The Company announced the sale of said land, along with 4 other pieces land not used in operations, to the public by posting for sale signs at respective land a period of least 1 month. The minimum price posted of each piece land was the average appraisal 2 independent appraisers listed on the Of 1.2 Prananporn Co.,Ltd. (the buyer) had bid for said land under the same terms and during time period as other bidders and won with the highest bid of Baht 131,000 per square wa or at a value 399,157,000 (the minimum price posted was Baht 120,000 per square wa, which the average appraisal of 2 Appraisal, both listed on the Of independent appraisers, namely American Appraisal and Years SEC’s list of appraisers). The buyer asked to extend the transfer of land from 28/09/2013 within 31/03/2014 and agreed pay interest of 7% per annum on the remainder sale price, to be paid day land transfer. The bid of the land had 3 interested bidders and winner offered a considerably higher than other bidders. In addition, the land is quite large with a high value and buyer has paid deposit of as much as 25% of the sale price. Therefore, Company agreed to extend transfer land and charged an interest of 7% per annum on the remainder sale price, which is a higher rate than Company’s Revenue from medical services provided under the agreement between Company and Bangkok Airways Public Company Limited, which is a normal business transaction of the under the same terms as with other customers. The Company paid air fare and freight charges to Bangkok Airways Public Limited at the market rate. The Company purchased rights issue of Bangkok Airways Public Limited 3,465,600 common shares at Baht 1 per share to maintain % of held. Account receivable for medical services provided under the agreement between Company and Bangkok Airways Public Limited, which is a normal business transaction of the Company under the same terms as with other customers. Revenue from medical services provided under the agreement between Company and Bangkok Helicopter Services Company Limited, which is a normal business transaction of the under the same terms as with other customers. The Company has leased of company, at the market rate and under normal business terms. Ļ Ļ and Bangkok Helicopter Services Company Limited, an associated company. Under the agreement, Company leased a chartered helicopter with the engine capacity to that enables equipment and support for patient care transfer akin to an ICU ready 24-hour emergency service. The helicopter also has received International Accreditation & Standardization from European Aero-Medial Institute (EURAMI), which is widely recognized across Europe, the Middle East and Asia. 44,643 64,094 5,465,753 2,454,268 3,465,850 1,088,142 14,448,998 58,838,278 99,157,000 Value (Baht) As of 31/12/2013 Transaction ce rental revenue ų 1.Deposit – land cost 2. Interest receivable 1. Medical services revenue 2. Air fare and air freight 3. Purchase of common shares debtors 4. Trade 1. Medical services revenue 2. Of 3. Patient transport by air Connected Person/Relationship 1. Prananporn Co.,Ltd. Relationship A Director of the Company is a major shareholder of Prananporn 2. Bangkok Airways Public Company Limited Relationship Bangkok Airways Public Company Limited and related persons combined own 7.84% of the Company and also has a Director who is also a Director and major shareholder of the Company 3. Bangkok Helicopter Services Company Limited Relationship The Company holds 49% with the remaining shares held by juristic persons which has a major shareholder who is also Director and major shareholder of the Company 1. Connected Transactions 1.1 General Transactions Bangkok Dusit Medical Services Public Company Limited (“the Company”) 78

Connected Transactions

Company Limited Limited Company

pay for air time. time. air for pay

Director and a major shareholder of THN Network Network THN of shareholder major a and Director

operator to service foreign customers, whereby the Company paid for production only and did not have to to have not did and only production for paid Company the whereby customers, foreign service to operator

Relationship a Director of the Company is the the is Company the of Director a Relationship

Advertising expense expense Advertising The Company paid for television advertisement to THN Network Company Limited , an English channel cable cable channel English an , Limited Company Network THN to advertisement television for paid Company The

3,210,000 79 9. THN Network Company Limited Company Network THN 9.

shareholder of Tim Product Co., Ltd. Co., Product Tim of shareholder

and major shareholder(s) of the Company is a major major a is Company the of shareholder(s) major and

with the procurement process via the Company’s central procurement company. company. procurement central Company’s the via process procurement the with

Relationship person(s) connected to the Director(s) Director(s) the to connected person(s) Relationship

Drinking water expense expense water Drinking The Company bought drinking water from Tim Product Co., Ltd.to produce a hospital brand in accordance accordance in brand hospital a produce Ltd.to Co., Product Tim from water drinking bought Company The

8,422,181 8.Tim Product Co., Ltd. Co., Product 8.Tim

Bangkok Air Tour (1988) Company Limited. Company (1988) Tour Air Bangkok Limited

2. Creditor (air fare) (air Creditor 2. The Company has account payable for air fare of management and employees which are not yet due to to due yet not are which employees and management of fare air for payable account has Company The shareholder of Bangkok Air Tour (1988) Company (1988) Tour Air Bangkok of shareholder 5,500

and major shareholder(s) of the Company is a major major a is Company the of shareholder(s) major and

an airplane ticket agent, at market rates. rates. market at agent, ticket airplane an Relationship person(s) connected to the Director(s) Director(s) the to connected person(s) Relationship

1. Air fare Air 1. The Company paid for air fare of management and employees to Bangkok Air Tour (1988) Company Limited, Limited, Company (1988) Tour Air Bangkok to employees and management of fare air for paid Company The 7. Bangkok Air Tour (1988) Company Limited Limited Company (1988) Tour Air Bangkok 7. 5,278,337

3. Deposit on retail space rental space retail on Deposit 3. agreement, which is the same as other renters. renters. other as same the is which agreement,

The Company received a deposit on retail space rental in Bangkok Plaza according to the retail space rental rental space retail the to according Plaza Bangkok in rental space retail on deposit a received Company The

61,200

2. Debtor (rental) Debtor 2. and rental rate as with other renters. renters. other with as rate rental and

Account receivable for retail space rental in accordance with the rental agreement, which has the same terms terms same the has which agreement, rental the with accordance in rental space retail for receivable Account shareholder of Rankindeeyudee Limited Partnership Partnership Limited Rankindeeyudee of shareholder 40,616

and major shareholder(s) of the Company is a major major a is Company the of shareholder(s) major and

1. Retail space rental space Retail 1. Partnership at the market rate and under the same rental terms as other renters. renters. other as terms rental same the under and rate market the at Partnership Relationship person(s) connected to the Director(s) Director(s) the to connected person(s) Relationship

The Company received retail space rental in Bangkok Plaza, Bangkok Hospital from Rankindeeyudee Limited Limited Rankindeeyudee from Hospital Bangkok Plaza, Bangkok in rental space retail received Company The 6. Rankindeeyudee Limited Partnership Partnership Limited Rankindeeyudee 6. 406,485

same terms as with other counter-parties. other with as terms same

4. Trade debtors Trade 4.

and Bangkok Travel Club Company Limited, which is a normal business transaction of the Company under the the under Company the of transaction business normal a is which Limited, Company Club Travel Bangkok and

4,500 Account receivable for medical services provided under the medical services agreement between the Company Company the between agreement services medical the under provided services medical for receivable Account

same terms as with other counter-parties. other with as terms same

3. Medical services revenue services Medical 3.

Bangkok Travel Club Company Limited, which is a normal business transaction of the Company under the the under Company the of transaction business normal a is which Limited, Company Club Travel Bangkok

4,500 Revenue from medical services provided under the medical services agreement between the Company and and Company the between agreement services medical the under provided services medical from Revenue

expenses expenses Club Company Limited at market rate and under the same trade terms comparable to other service providers service other to comparable terms trade same the under and rate market at Limited Company Club

2. Travelling and accommodation accommodation and Travelling 2. shareholder of Bangkok Travel Club Company Limited Company Club Travel Bangkok of shareholder 2,747,841 outsite meetings and seminars to Bangkok Travel Travel Bangkok to seminars and meetings outsite for accommodation and ravelling T for paid Company The

and major shareholder(s) of the Company is a major a is Company the of shareholder(s) major and

Relationship person(s) related to the Director(s) Director(s) the to related person(s) Relationship other renters of retail space for booths. booths. for space retail of renters other

1. Retail space rental space Retail 1. 5. Bangkok Travel Club Company Limited Company Club Travel Bangkok 5. 120,000 Revenue from retail space rental for a booth to sell products at Bangkok Plaza at the regular rate charged to to charged rate regular the at Plaza Bangkok at products sell to booth a for rental space retail from Revenue

Limited, according to the retail space rental agreement, which is the same as other renters. other as same the is which agreement, rental space retail the to according Limited,

3. Deposit on retail space rental space retail on Deposit 3. 613,840 The Company received a deposit on retail space rental in Bangkok Plaza from BAC Gourmet House Company Company House Gourmet BAC from Plaza Bangkok in rental space retail on deposit a received Company The

is also a Director of BAC of Director a also is market prices and trade terms as other service providers. service other as terms trade and prices market

2. Catering service Catering 2. Public Company Limited and the Company’s Director Director Company’s the and Limited Company Public 2,483,160 The Company paid BAC Gourmet House Company Limited for catering services of Arabian food at comparable comparable at food Arabian of services catering for Limited Company House Gourmet BAC paid Company The

Company Limited, a subsidiary of Bangkok Airways Airways Bangkok of subsidiary a Limited, Company

Relationship BAC is held by Bangkok Air Catering Air Bangkok by held is BAC Relationship the market rate and under the same rental terms as other renters. other as terms rental same the under and rate market the

4. BAC Gourmet House Company Limited Company House Gourmet BAC 4. 1. Retail space rental space Retail 1. 6,033,701 The Company received retail space rental in Bangkok Plaza from BAC Gourmet House Company Limited at at Limited Company House Gourmet BAC from Plaza Bangkok in rental space retail received Company The

is a normal business condition whereby the owner shall ask for a deposit from the renter. the from deposit a for ask shall owner the whereby condition business normal a is

ce rental ce ų of on Deposit 5. 14,868 The Company received a deposit on of on deposit a received Company The ce rental from Bangkok Helicopter Services Company Limited, which which Limited, Company Services Helicopter Bangkok from rental ce ų

Helicopter Services Company Limited, which is a normal business condition. business normal a is which Limited, Company Services Helicopter

4. Trade creditors Trade 4. 32,652,659 The Company has account payable for transport of patients by air which are not yet due to Bangkok Bangkok to due yet not are which air by patients of transport for payable account has Company The

As of 31/12/2013 of As

Connected Person/Relationship Connected Transaction Reason and Necessity and Reason Value (Baht) Value Connected Transactions 80 Value (Baht) Connected Person/Relationship Transaction As of 31/12/2013 Reason and Necessity

10. Mr. Pongsak Viddayakorn, M.D. Compensation under Labor law 15,217,920 Compensation plus interest under Labor Law paid to a Director who was a former executive of the Company in accordance with the Central Labor Relationship a Director of the Company plus interest Court’s judgment. (resigned effective 1st January 2014) 11. Mr. Chirotchana Suchato, M.D. X-ray evaluation 457,769 The Company paid for doctor’s consultation fee in evaluating a patient’s x-ray to Mr. Chirotchana Suchato, M.D., which is normal business transaction Relationship a Director of the Company whereby the Company shall pay professional fees to doctors who evaluate x-rays.

Subsidiaries Value (Baht) Connected Person/Relationship Transaction As of 31/12/2013 Reason and Necessity

1. Bangkok Airways Public Company Limited 1. Medical services revenue 130,072 Revenue from medical services provided under the medical services agreement between a subsidiaries and Bangkok Airways Public Relationship Bangkok Airways Public Company Company Limited, which is a normal business transaction of the subsidiary under the same terms as with other customers. Limited and related persons combined own 7.84% of the Company and also has a Director 2. Air transport cost 1,767,500 Subsidiaries paid for patient transport by air to Bangkok Airways Public Company Limited to support normal trade at the market rate who is also a Director and major shareholder for a chartered Ŵight with normal trade terms. of the Company 3. Air fare and air freight 7,450,559 Subsidiaries paid air fare and air freight charges to Bangkok Airways Public Company Limited at the general market rate.

A subsidiary paid marketing expenses for a joint marketing event and is considered a normal business transaction in support of 4. Marketing support expense 500,000 a subsidiary in the area. 5. Trade debtor 98,233 Subsidiaries have account receivable for medical services from Bangkok Airways Public Company Limited, which is a normal business transaction of subsidiaries under the same terms as with other counter-parties.

6. Trade creditor 37,686 Subsidiaries have creditor for transport expense of lab samples, which are not yet due to Bangkok Airways Public Company Limited under the business terms of normal trade of subsidiaries.

7. Other creditor - air fare 1,661,830 Subsidiaries have creditor for air fare of management and employees as well as air freight, which are not yet due to Bangkok Airways and air transport expenses Public Company Limited under general business terms. 2. Bangkok Helicopter Services Company Limited 1. Lab analysis revenue 360,000 A subsidiary provided lab services for annual check-ups of employees of Bangkok Helicopter Services Company Limited. Relationship The Company holds 49% with the remaining shares held by juristic persons which has a major shareholder who is also a Director 2. Food revenue 4,206 A subsidiary sold food to Bangkok Helicopter Services Company Limited, which is a normal business transaction of the subsidiary. and major shareholder of the Company 3. Trade debtor 33,100 A subsidiary has a debtor for lab services for annual check-ups of employees of Bangkok Helicopter Services Company Limited, an associated company of the Company.

3.Bangkok Air catering Co., Ltd. 1. Lab analysis revenue 53,865 A subsidiary provided lab analysis services, under the medical services agreement, to employees of Bangkok Air catering Co., Ltd. Relationship a subsidiary of Bangkok Airways Public which is a normal business transaction under the same terms as with other counter-parties. Company Limited and the Company’s Director is also a Director of Bangkok Air catering Co., Ltd.

Connected Transactions

: The Meeting of the Audit Committee was of the opinion that the aforementioned transactions were reasonable transactions whic transactions reasonable were transactions aforementioned the that opinion the of was Committee Audit the of Meeting The : Committee Audit the of Opinion h were entered under general business terms. terms. business general under entered were h

2. Trade creditor Trade 2. of Urupong of 42,608 Subsidiaries have a creditor for X-ray services that are not yet due to Computed Tomography Uruping Co.,Ltd., which is a genera a is which Co.,Ltd., Uruping Tomography Computed to due yet not are that services X-ray for creditor a have Subsidiaries l trade credit term. term. credit trade l the authorized Director and a major shareholder shareholder major a and Director authorized the

81 Relationship a Director of the Company is is Company the of Director a Relationship subsidiaries are lower than that of other service providers. providers. service other of that than lower are subsidiaries

1. X-ray cost X-ray 1. 12. Computed Tomography Urupong Co.,Ltd. Urupong Tomography Computed 12. 1,082,129 Subsidiaries paid to Computed Tomography Uruping Co.,Ltd. for X-ray services as subsidiaries do not have the equipment and the the and equipment the have not do subsidiaries as services X-ray for Co.,Ltd. Uruping Tomography Computed to paid Subsidiaries fees charged charged fees

normal business transaction of the subsidiary. subsidiary. the of transaction business normal

2. Medical services revenue services Medical 2. 19,826 A subsidiary provides medical services to Metro Machinery Company Limited in accordance with the medical services agreement, wh agreement, services medical the with accordance in Limited Company Machinery Metro to services medical provides subsidiary A ich is a a is ich

of the Company is a Director of Metro Machinery Metro of Director a is Company the of

Relationship a Director and major shareholder shareholder major and Director a Relationship accordance with the normal procurement process of subsidiaries. subsidiaries. of process procurement normal the with accordance

1. Generator maintenance fee maintenance Generator 1. 11. Metro Machinery Company Limited Company Machinery Metro 11. 1,792,222 Subsidiaries paid for maintenance fees of a generator to Metro Machinery Company Limited, a service provider of generator maint generator of provider service a Limited, Company Machinery Metro to generator a of fees maintenance for paid Subsidiaries enance, in in enance,

Samui Palm Beach Palm Samui of shareholder

and major shareholder of the Company’s is a major major a is Company’s the of shareholder major and

Relationship a juristic person connected to a Director Director a to connected person juristic a Relationship the same terms and prices as with other counter-parties that the subsidiary provides service to. to. service provides subsidiary the that counter-parties other with as prices and terms same the

Medical services revenue services Medical 10. Samui Palm Beach Resort Company Limited Limited Company Resort Beach Palm Samui 10. 18,314 A subsidiary provides medical services to guests of Samui Palm Beach Resort Company Limited in accordance with the service agre service the with accordance in Limited Company Resort Beach Palm Samui of guests to services medical provides subsidiary A ement, which has has which ement,

2. Retail space debtor debtor space Retail 2.

shareholder of the Company is a major shareholder major a is Company the of shareholder 7,210 A subsidiary has a retail space rental debtor at the end of the period, which is normal for such trades. trades. such for normal is which period, the of end the at debtor rental space retail a has subsidiary A

Relationship a person connected to a Director and major major and Director a to connected person a Relationship

1. Rental space rental space Rental 1. 9. Rankindeeyudee Limited Partnership Partnership Limited Rankindeeyudee 9. 49,504 A subsidiary has received rental revenue from Rankindeeyudee Limited Partnership at the same rate and terms as the subsidiary subsidiary the as terms and rate same the at Partnership Limited Rankindeeyudee from revenue rental received has subsidiary A provides to other renters. renters. other to provides

2. Drinking water creditor water Drinking 2. 3,317 Subsidiaries have creditor for bottled drinking water with Tim Product Co., Ltd .that is not yet due, which is normal for such such for normal is which due, yet not is .that Ltd Co., Product Tim with water drinking bottled for creditor have Subsidiaries trades.

shareholder of the Company is a major shareholder major a is Company the of shareholder

Relationship a person connected to a Director and major major and Director a to connected person a Relationship procurement company. company. procurement

1. Drinking water expense expense water Drinking 1. 8. Tim Product Co., Ltd Co., Product Tim 8. 6,021,101 Subsidiaries have engaged Tim Product Co., Ltd.to produce a hospital bran drinking water, under the procurement process of the the of process procurement the under water, drinking bran hospital a produce Ltd.to Co., Product Tim engaged have Subsidiaries company’s central central company’s

shareholder of the Company is a major shareholder major a is Company the of shareholder

expenses expenses Relationship a person connected to a Director and major major and Director a to connected person a Relationship

Travelling and accommodation accommodation and Travelling 7. Bangkok Travel Club Company Limited Company Club Travel Bangkok 7. 702,858 Subsidiaries paid for management. for paid Subsidiaries

normal business terms. terms. business normal

2. Air fare creditor fare Air 2. shareholder 145,700 Subsidiaries have creditor for air fare of management and employees which are not yet due to Bangkok Air Tour (1988) Company Li Company (1988) Tour Air Bangkok to due yet not are which employees and management of fare air for creditor have Subsidiaries mited under under mited

major shareholder of the Company is a major major a is Company the of shareholder major

Relationship a person connected to a Director and and Director a to connected person a Relationship

1. Air fare Air 1. 6. Bangkok Air Tour (1988) Company Limited Company (1988) Tour Air Bangkok 6. 5,956,665 Subsidiaries paid for air fare of management and employees to Bangkok Air Tour (1988) Company Limited, an airplane ticket agent ticket airplane an Limited, Company (1988) Tour Air Bangkok to employees and management of fare air for paid Subsidiaries , at market rates. rates. market at ,

of BAC and the Company’s Director is also a Director of BAC of Director a also is Director Company’s the and BAC of

Bangkok Airways Public Company Limited, is a major shareholder shareholder major a is Limited, Company Public Airways Bangkok

Relationship Relationship Bangkok Air catering Co., Ltd.,a subsidiary of of subsidiary Ltd.,a Co., catering Air Bangkok

Catering expense Catering 5. BAC Gourmet House Company Limited Company House Gourmet BAC 5. 33,873 Subsidiaries paid BAC Gourmet House Company Limited for catering services of Arabian food at market price. price. market at food Arabian of services catering for Limited Company House Gourmet BAC paid Subsidiaries

of Bangkok Air Catering Company Limited Company Catering Air Bangkok of

shareholder and has a Director who is also a Director Director a also is who Director a has and shareholder

2. Trade debtor Trade 2. 106,560 of Bangkok Airways Public Company Limited, is a major major a is Limited, Company Public Airways Bangkok of Subsidiaries have account receivable for medical services from Bangkok Air Catering Company Limited, which is a normal business normal a is which Limited, Company Catering Air Bangkok from services medical for receivable account have Subsidiaries transaction. transaction.

Relationship Bangkok Air catering Co., Ltd., a subsidiary subsidiary a Ltd., Co., catering Air Bangkok Relationship

transaction under the same terms as with other counter-parties. counter-parties. other with as terms same the under transaction

4. Bangkok Air Catering Company Limited Company Catering Air Bangkok 4.

1. Medical services revenue services Medical 1. 1,791,930 provided medical services to employees of Bangkok Air Catering Company Limited under the service agreement, which which agreement, service the under Limited Company Catering Air Bangkok of employees to services medical provided Subsidiaries is a normal business business normal a is

transactions. transactions.

3. Trade debtor Trade 3. 17,955 A subsidiary has a debtor for lab analysis services provided to Bangkok Air catering Co., Ltd., which has the normal credit ter credit normal the has which Ltd., Co., catering Air Bangkok to provided services analysis lab for debtor a has subsidiary A ms of general business business general of ms

which is a normal business transaction under the same terms as with other counter-parties. counter-parties. other with as terms same the under transaction business normal a is which

Subsidiaries received revenue from medical services provided under the medical services agreement, to employees of Bangkok Air Bangkok of employees to agreement, services medical the under provided services medical from revenue received Subsidiaries catering Co., Ltd., Ltd., Co., catering 2. Medical services revenue services Medical 2. 591,930

As of 31/12/2013 of As

Connected Person/Relationship Connected Transaction Reason and Necessity and Reason Value (Baht) Value Connected Transactions 82

1.2 Summary of Loans for Financial Assistance at the end of 2013 (Unit: Baht)

Loan to Subsidiaries Total Guarantee Short term loan Accrued Company name % of Holding Outstanding Obligation Long term loan Short term loan Advance Interest receivable to subsidiaries interest

Bangkok Hospital Pattaya Co., Ltd. Company holds 97.3% - - - - 15,223,965 867,970 Bangkok Hospital Rayong Co., Ltd. Company holds 100.0% - 280,661,140 - 202,489 280,863,629 - 43,777 Bangkok Hospital Hadyai Co., Ltd. Company holds 98.8% - - - - - 5,589,830 88,803 Wattanavej Co., Ltd. Company holds 99.7% - - - - - 141,205,942 332,015 Bangkok Hospital Samui Co., Ltd. Company holds 100.0% - - - - - 97,674,636 234,382 Bangkok Hospital trad Co., Ltd. Company holds 99.8% - - - - - 27,563,694 74,162 Bangkok Hospital Ratchasima Co., Ltd. Company holds 90.9% 133,900,000 74,177,279 - 275,740 208,353,019 - - Bangkok Hospital Phuket Co., Ltd. Company holds 99.7% - 81,924,772 - 59,380 81,984,152 - 355,559 Bangkok Hosital Prapradaeng Co., Ltd. Company holds 84.0% - 55,812,496 - 189,686 56,002,182 - - Samitivej Plc. (SVH) Company holds 95.8% - - - - - 962,020,331 1,937,671 BNH Medical Center Co., Ltd. Company holds 91.5% - - - - - 124,395,917 522,912 Prasit Patana Plc. (PPCL) Company holds 98.4% 3,103,921,600 - - 1,792,431 3,105,714,031 391,395,147 1,288,687 Paolo Medic Co., Ltd. Company holds 100.0% 412,540,000 - - 236,674 412,776,674 106,323,481 356,853 Siam Medical Co., Ltd. Company holds 85.7% - - - - 116,702,443 284,965 Thai Medical Center PLC. Company holds 99.8% 526,500,000 - - 302,052 526,802,052 42,104,232 152,343 Paolo Samut Prakran Co., Ltd. Company holds 93.5% 89,270,000 - - 51,214 89,321,214 123,766,385 329,043 Ankor Pisith Co., Ltd (1) Company holds 80.0% 40,847,250 - - 1,565,342 42,412,592 USD 3,412,000 - - Phnom Penh Medical Services Co., Ltd.(2) Company holds 100.0% 644,381,700 - - 11,584,765 655,966,464 - - Royal Rattanak Medical Services Co., Ltd.(3) Company holds 70.0% 37,016,571 - - 504,069 37,520,640 - - National Healthcare Systems Co., Ltd. Company holds 74.0% - 189,698,223 - 562,086 190,260,309 - - Bio-Molecular Laboratories (Thailand) Co., Ltd. Company holds 95.0% - - - - - 22,492,571 54,579 Greenline Synergy Co., Ltd. Company holds 100.0% 80,000,000 - - 54,455 80,054,455 - - BDMS Training Co., Ltd. Company holds 100.0% - 12,799,853 - 65,144 12,864,997 - - A.N.B. Laboratory Co., Ltd. Company holds 100.0% - 159,727,765 - 598,079 160,325,844 - - Bankok Premier Life Insurance Co., Ltd. Company holds 100.0% ------Bangkok Hospital Udon Co., Ltd. Company holds 100.0% 500,000,000 57,916,774 - 875,703 558,792,477 - - Bangkok Hospital Chiangmai Co., Ltd. Company holds 100.0% - - - - - 554,527,519 1,203,422 Asia International Healthcare Co., Ltd. Company holds 100.0% - - - - - 13,500,000 - Bangkok Hospital Khao Yai Co., Ltd. Company holds 100.0% - - - - - 2,000,000 - Bangkok Hospital Khon Kaen Co., Ltd. Company holds 100.0% 115,000,000 - - 78,279 115,078,279 - - Bangkok Hospital Phitsanulok Co., Ltd Company holds 100.0% - - - - - 28,442,109 34,287 Bangkok Hospital Surath Co., Ltd Company holds 100.0% ------Samitivej Chonburi Co., Ltd. Company holds 100.0% - - - - - 92,014,321 199,751 The Medic Pharma Co., Ltd. Company holds 86.9% 50,000,000 - - 34,034 50,034,034 59,494,247 140,658 Samitivej Sriracha Co., Ltd. Hold trought SVH 69.8% - - - - - 331,901 5,733,377,121 912,718,302 - 19,031,622 6,665,127,044 USD 3,412,000 2,926,436,769 8,833,739

Remarks: (1) Debt for loan in foreign currency US$ 1.25 million (equal to Baht 40.85 million) (2) Debt for loan in foreign currency US$ 19.72 million (equal to Baht 644.38 million) (3) Debt for loan in foreign currency US$ 1.13 million (equal to Baht 37.02 million) Connected Transactions 83

exibility, the Company may bring transactions with associated companies which are normal business exibility, the Company may bring transactions with associated companies which are normal business In the case that the Company and subsidiaries purchase goods and services, raw materials and In the case that the Company and subsidiaries purchase goods and services, raw materials medical supplies, or procurements related to and in support of medical services provided among are the companies, or between the Company and/or subsidiaries and connected persons, which price transactions in support of the Company’s and/or subsidiary’s normal business, the product or service fee of such transactions must be at a referenced market rate. In addition, the payment the terms and trade agreements and terms must not differ from the term and conditions in which Company and/or subsidiary enters with other counter parties under the same circumstances. The Securities and Stock Exchange Act (Fourth Edition) Amendment B.E. 2551 effective 31st August for 2008 and the Securities and Exchange Commission circular dated 16th July 2008 state that Ŵ and transactions or transactions supporting normal business between the Company or subsidiaries a related person in front of the Board of Directors for approval in principal. Therefore, at the Board of Directors Meeting 8/2551 on 27th August 2008, the Board gave management approval in principal to consider entering into normal business or transaction supporting normal business transactions with normal trade terms, which are priced or have fees charged at the market rate with the same terms as the Company’s transactions with external parties. Normal business transactions provides medical services and/or patient transfers, In the case that the Company and/or subsidiaries and subsidiaries to charge fees for such transactions the Company has the policy for the Company connected persons at the market rate. The rate between the Company and/or subsidiaries and shall be equal to or similar to such rates and charged, payment terms and other business terms charges and stipulates for transactions with other terms that the Company and/or subsidiaries persons or counter parties under the same situations. that support general business Transactions Type of TransactionType and Policy Trend The Director was appointed to the subsidiary as a representative of the Company as a major shareholder, not The Director was appointed to the subsidiary Normal business transactions or transactions that support general business 2. Policy and Future Connected Transactions and Future 2. Policy List of connected Person List of connected 1. M.D. Mr. Prasert Prasarttong-Osoth, 2. M.D. Mr. Chuladej Yossundharakul, 3. Mr. Wichai Thongtang 4. Mr. Chirotchana Sucharto, M.D. 5. Mr. Santasiri Sornmani, M.D. 6. Mr. Chatree Duangnet, M.D. 7. Mr. Pradit Theekakul 8. Mrs. Narumol Noi-am as a personal appointment. Connected Transactions 84 Shareholders’ meeting,asthe casemaybe. an opiniononthetransaction fortheconsiderationbyAuditCommitteeand/or BoardofDirectorsand/orthe a connectedtransactionthat mayoccur,thecompanyhaspolicytoseekanindependent professionaltoprovide ensuring thatsuchtransactions arefair.InthecasethatAuditCommitteedoes nothavetheexpertisetoreview subsidiaries toengageinconnectedtransactions,the companyhasassignedtheAuditCommitteetaskof Furthermore, forinvestorprotectionandtransparency, inthecasethatitisnecessaryforCompanyand/or and/or regulationsoftheStockExchangeThailand noti AlltypesofconnectedtransactionswillbeexecutedinaccordancewiththeSecuritiesandExchangeAct Securities andExchangeAct connected transactionsbythe Other transactionsde Financial Assistance yeo rnato Trend andPolicy Type ofTransaction ų ned as Bene 2. Guaranteeloansofforeignsubsidiaries ų as wellanyotherrelatednoti bene with eachotherinthefuture,suchtransactionsshallbeforbene thecasethatitisdeemednecessaryforCompanyand/orsubsidiariestoenterintotransactions In needing capitalcanborrowataratenohigherthanthemarketrate. receive interestataratehigherthanthesavingsof Bene liquidity tothesubsidiarywithinterestchargedatmarketrate. rate. Atthesametime,ifanysubsidiaryrequirescapital,Companywilltransferexcess bank accountwillbestatedasshort-termloanfromasubsidiarywithinterestchargedatthemarket subsidiary’s bankaccounttotheCompany’saccount.Themoneytransferredinto At theendofbusinessday,liquiditymanagementprogramwilltransfermoneyfrom 3. CentralizeLiquidityManagement(CashPooling) in thatparticularcountryataprimerate. The Companyhasthepolicytoprovide holds morethan50percentofthesharesoutstanding.The Bene which islessthantheratesubsidiarywouldbechargediftakingoutaloandirectly. that moneytothesubsidiaryatarateofnomorethan1%perannumaboveactualcostcapital, The Companywilltakeoutaloaninthemoneymarketorfrom 1. Loanstosubsidiaries The Companyhasthepolicytoenterinto3typesof appropriately andef remaining shares.Such condition thatthesubsidiaryhasnoconnectedpersonholdsmorethan10percentof nancial institutionastheCompanyiscapableofseekingloansatalowerrate. ų ų ų ų t ofeachshareholderundertheregulationsandguidelinesSecuritiesExchangeAct t derived t derived t derived To enabletheforeignsubsidiarytoseekaloandirectlyfrom ForliquiditymanagementwithintheGroup,companieswithexcesswill Thesubsidiarycantakeoutaloanatratelowerthanborrowingdirectlyfrom ų ciently forthegreaterbene ų

nancial assistancewillcentralize ų cations ofagenciesthatregulatetheCompany. ų nancial assistanceonlytosubsidiariesinwhichtheCompany ų cations oftheCapitalMarketSupervisoryBoard. ų t oftheorganizationasawhole. ų nancial assistancetransactionsasfollows: ų ų ų nancial assistanceisprovidedunderthe nancial managementtomanagecosts nancial institutions,whilecompanies ų nancial institutionandthenloan ų t oftheCompanyandequal ų nancial institution Management discussion and analysis

Management discussion and analysis for the year ended December 31, 2013

Executive Summary 2013 Performance Bangkok Dusit Medical Services Public Company Limited (“Company”) reported consolidated operating income of Baht 51,158 million or increased by 11% yoy. The growth was attributable to an increase in revenue of network hospitals in Bangkok and vicinity of 10% yoy and network hospitals in the upcountry of 12% yoy. Key growth drivers were attributable to an increase in number of both inpatients and outpatients of approximately 6% yoy and an increase in healthcare inŴation and intensity of approximately 5% yoy together with existing capacity expansion, patient ward renovation, an increase in patient referral and the acquisitions of new network hospitals such as Bangkok Hospital Udon, Samitivej Thonburi Hospital and Bangkok Hospital Phitsanulok. In addition, revenue from sales of goods and food increased 23% yoy due mainly to the consolidation of The Medic Pharma Co., Ltd since June 2013. The Company and its subsidiaries reported EBITDA of Baht 10,877 million, slightly increased by 1% yoy. Consequently, the Company and its subsidiaries reported net proųt of Baht 6,113 million, an increase of 6% yoy. If including non- recurring items which are gain on fair value adjustment of investments of Baht 148 million during 2013 and gain on fair value adjustment of investments of Baht 1,795 million together with share of income from investment in associated companies of Baht 276 million during 2012, net proųt was Baht 6,261 million or decreased by 20% yoy.

2013 Consolidated Financial Summary Operating Income (THB mm) 2013 2012 %Change

Revenues from hospital operations 49,170 44,307 11% Revenue from sales of goods and food 1,446 1,171 23% Other income 543 516 5% Total Operating Income 51,158 45,994 11% In 2013, total operating income were Baht 51,158 million, an increase of Baht 5,164 million or 11% from 2012, primarily due to Ļ Revenues from hospital operations were Baht 49,170 million, an increase of Baht 4,863 million or 11% from 2012. The growth was contributable to an increase in number of outpatients and inpatients across our network hospitals, rising healthcare inŴation and an increase in patient acuity together with patient ward renovation, an increase in patient referral and the consolidation of Bangkok Hospital Udon since December 2012, Samitivej Thonburi Hospital since May 2013 and Bangkok Phitsanulok Hospital since October 2013. During 2013, Thai and international patients grew 10% and 11% yoy respectively resulting in the revenue proportion between Thai and international patients remains unchanged at 72%:28% in 2012 and 2013. From type of patient perspectives, outpatient revenues grew by 11% yoy while the inpatient revenues increased by 10% yoy. 85 Ļ Revenues from sales of goods and food were Baht 1,446 million, an increase by 23% from 2012, mainly from Management discussion and analysis consolidation of The Medic Pharma Co., Ltd since June 2013. Ļ Other incomes were Baht 543 million, an increase by 5% from 2012.

Operating Expenses (THB mm) 2013 2012 %Change

Cost of hospital operations and others 32,977 29,239 13% Administrative expenses 10,549 8,969 18% Total Operating Expenses 43,526 38,207 14% In 2013, the Company and its subsidiaries reported total operating expenses & depreciation of Baht 43,526 million, an increase of Baht 5,318 million or 14% from 2012. Ļ Cost of hospital operations and others (including depreciation and amortization) were Baht 32,977 million, an increase by 13% from 2012. An increase was due mainly to an organic growth in revenues from hospital operations together with rising in clinical staffs expenses as a result of an increasing in annual salary and number of clinical staffs together with newly recruited specialist doctors both full-time and part-time to accommodate the rising demand of the existing network hospitals and in preparation for the new network hospitals. Ļ The administrative expenses (including depreciation and amortization) were Baht 10,549 million, an increase by 18% from 2012, due mainly to an increase in annual salary and other administrative expenses as a result of rising in operating income, for example, an increase in utilities expenses and rental expenses together with rising in provisioning for doubtful debts in accordance with our provisioning policy. Ļ The depreciation and amortization expenses were Baht 3,244 million in 2013, an increase by 10% yoy due mainly to renovation expansion and new medical equipment of the network hospitals together with the consolidation of depreciation and amortization of new network hospitals.

Other Major Items Ļ Share of income from investments in associated companies of Baht 988 million was mainly from share of income from investment in Bumrungrad Hospital Public Co., Ltd (“BH”) of Baht 628 million together with share of income from investment in Ramkhamhaeng Hospital Public Co., Ltd (“RAM”) of Baht 348 million. Ļ Finance expenses increased to Baht 957 million or increased by 13% yoy due mainly to an issuance of debentures during 2013 totaling Baht 7,000 million and short-term loan from ųnancial institutions of Baht 4,600 million to ųnance for the expansion of network hospitals netted with redemption of maturity debentures and repayment of short term loan from ųnancial institutions. Ļ Taxes in 2013 were Baht 1,392 million, a decrease from Baht 1,611 million in 2012, due mainly to a reduction in corporate income tax rate to 20% 86 Management discussion and analysis

Non-Recurring Items In 2013, the Company and its subsidiaries recorded non-recurring items for gain on fair value adjustment of investments totaling Baht 148 million as a result of “Step Acquisition” in accordance with Thai Financial Reporting Standard (“TFRS 3”) – Business Combinations (effective in 2011) which the Company are required to revalue the original stake from the carrying cost to the fair value and recognize the difference in the statements of income. There are two Step Acquisitions from the following investments (1) Investment in Thonburi Medical Center Public Co., Ltd During 1Q13, Royal Bangkok Healthcare Co., Ltd, a Company’s subsidiary, acquired additional shares in Thonburi Medical Center Public Co., Ltd (“KDH”) resulting in the Company and the subsidiary to increase its holding from 20.01% to 45.02%. During 2Q13, the Company appointed directors and management to manage KDH, therefore, such company changed its status to become a subsidiary company. The Company realized the gain from remeasurement of its previously held shareholding to fair value by Baht 61 million. At present, the Company increased its shareholding in KDH to 55.35%. (2) Investment in The Medic Pharma Co., Ltd The Company acquired additional shares in The Medic Pharma Co., Ltd for totaling Baht 160 million and increased its shareholding from 49.00% to 86.23%. The Medic Pharma Co., Ltd then becomes a subsidiary company. The Company realized the gain from remeasurement of its previously held shareholding to fair value by Baht 87 million At present, the Company increased its shareholding to 86.89%. In 2012, the Company and its subsidiaries recorded non-recurring items for gain on fair value adjustment of investment in BH totaling Baht 1,795 million during 1Q12. Also, the Company and its subsidiaries recorded non-recurring items of totaling Baht 276 million for gain on sales of all of BH investments in Bangkok Chain Hospital Public Co., Ltd. of Baht 135 million together with RAM’s gain on swap of securities of Baht 141 million during 3Q12.

Proųtability Analysis (THB mm) Dec 13 Dec 12 %Change

EBITDA 10,877 10,737 1% EBITDA margin 21.3% 23.3% EBIT* 8,721 8,551 2% EBIT margin* 17.0% 18.6% Net proųt* 6,113 5,778 6% Net proųt margin* 11.9% 12.6% Net proųt 6,261 7,849 (20)% Net proųt margin 12.2% 17.1% Basic earnings per share* 3.95 3.74 6% Basic earnings per share 4.05 5.08 (20)% * Excluding non-recurring items Remarks EBITDA  Total operating income – Total operating expenses (Excluding depreciation and amortization) EBITDA Margin = EBITDA / Operating income

87 As previously mentioned, EBITDA increased from 10,737 in 2012 to Baht 10,877 million in 2013 or slightly increased Management discussion and analysis by 1% yoy. EBITDA margin, however, decreased from 23.3% in 2012 to 21.3% in 2013. If excluding the non-recurring items, net proųt was Baht 6,113 million, an increase of Baht 335 million or increased by 6% yoy. Net proųt margin, however, decreased from 12.6% in 2012 to 11.9% in 2013. Basic earnings per share increased from Baht 3.74 in 2012 to Baht 3.95 in 2013. If including the non-recurring items, net proųt was Baht 6,261 million in 2013, a decrease of Baht 1,588 million, or decreased by 20% yoy. Net proųt margin decreased from 17.1% in 2012 to 12.2% in 2013. Basic earnings per share also decreased from Baht 5.08 in 2012 to Baht 4.05 in 2013.

Asset (THB mm) Dec 13 Dec 12 %Change

Cash & cash equivalents 4,061 3,590 13% Trade & other receivables 4,925 4,287 15% Inventories 919 780 18% Investment in associates 13,092 12,864 2% Property, premises & equipment 38,875 33,152 17% Goodwill 10,945 10,609 3% Other assets 3,582 3,179 13% Total assets 76,399 68,461 12%

The consolidated ųnancial position of the Company and its subsidiaries as of December 31, 2013: The Company and its subsidiaries reported total assets of Baht 76,399 million, an increase of Baht 7,938 million or increased by 12% from December 31, 2012. Signiųcant changes are summarized as follows:- Ļ Trade and other receivables of Baht 4,925 million, an increase by 15% yoy due mainly to an increase in revenue from hospital operations together with growth in private health insurance and contracts resulting in an increase in average collection period from 32.7 days in 2012 to 35.4 days in 2013. Allowance for doubtful accounts of Baht 431 million as of 31 December 2013 is provided for the estimated losses that may be incurred in collection of receivables. The allowance is generally based on collection experiences and analysis of the receivables aging. Ļ Inventories of Baht 919 million, an increase by 18% yoy. Inventories are consisted of 85% medicines and medical supplies, 9% reagent and 6% supplies and others. Ļ Investment in associated companies of Baht 13,092 million, an increase by 2% yoy due mainly to share of income from associates companies. Ļ Property, premises and equipment of Baht 38,875 million, an increase by 17% yoy due mainly to building renovation, purchase of new medical equipment, land purchase, building under construction and medical equipment under installation for new network hospitals, for example, Bangkok Hospital Khonkaen and Bangkok Hospital Chiangmai totaling Baht 7,666 million together with land, building and medical equipment from an acquisitions of KDH for Baht 559 million, The Medic Pharma Co., Ltd. for Baht 123 million and Bangkok Hospital Phitsanulok for Baht 545 million, netted with accumulated depreciation 88 Management discussion and analysis

Liabilities and Equity (THB mm) Dec 13 Dec 12 %Change

Debentures* 14,059 9,064 55% Long-term loans* 8,564 9,448 (9)% Other non-current liabilities 11,133 11,562 (4)% Total liabilities 33,755 30,074 12% Equity attributable to equity holder of the Company 40,681 36,853 10% Non-controlling interests 1,963 1,534 28% Total equity 42,644 38,387 11% * Including current portion

Total consolidated liabilities as of December 31, 2013 were Baht 33,755 million, an increase of Baht 3,681 million or 12% from December 31, 2012, due mainly to an issuance of debentures amounting to Baht 7,000 million and increase in short-term loans from ųnancial institutions of Baht 4,600 million, netted with redemption of debentures of Baht 2,000 million, repayment of short-term loan from ųnancial institutions of Baht 5,809 million and repayment of long-term loans from ųnancial institutions of Baht 980 million. Total consolidated shareholders’ equity was Baht 42,644 million, an increased by Baht 4,257 million or 11% from December 31, 2012. This is due mainly to comprehensive income during 2013 netted with dividend payment of Baht 2,782 million.

Liquidity and Capital Management Cash Flow (THB mm) 2013

Net cash from operating activities 8,527 Net cash used in investing activities (7,619) Net cash used in ųnancing activities (436) Net increase in cash and cash equivalents 472 Beginning cash and cash equivalents 3,590 Ending cash and cash equivalents 4,061 For year ended December 31, 2013, the Company and its subsidiaries had net increase in cash and cash equivalent of Baht 472 million, with the cash and cash equivalents at the beginning of the period of Baht 3,590 million. As a result, cash and cash equivalents at the end of the period was Baht 4,061 million. Details of cash Ŵow by activities during the period are as follows:- Net cash Ŵows from operating activities were Baht 8,527 million, resulting mainly from proųt during 2013. Net cash used in investing activities were Baht 7,619 million. The investing activities during the year were mainly from purchase of property, premises and equipment for Baht 7,344 million to expand our network hospitals and payment for leasehold rights for Baht 426 million. 89 Net cash used in ųnancing activities were Baht 436 million comprising mainly from cash received from short-term Management discussion and analysis loans from ųnancial institutions of Baht 4,600 million and issuance of debentures of Baht 6,992 million netted with repayment of short-term loans from ųnancial institutions of Baht 5,809 million, redemption of maturing debentures of Baht 2,000 million, repayment of long-term loans from ųnancial institutions of Baht 980 million and dividend payment of Baht 2,782 million.

Capital Expenditures Capital expenditures in 2013 amounted to Baht 8,893 million or 17.4% of total operating income. The capital expenditure consisted mainly of land and medical equipment purchase for existing and new network hospitals totaling Baht 7,665 million together with land, building and equipment from acquisitions of KDH, The Medic Pharma Co., Ltd. and Bangkok Hospital Phitsanulok totaling baht 1,227 million. The Company’s strategy remains focused towards the continued expansion in the healthcare and healthcare related business to serve the increasing patient demand in key strategic areas. The capital expenditures are funded mostly through our internal cash Ŵows, long-term debt and debentures.

Ratios Analysis 2013 2012

Returns (%) Return on Asset 8.4 9.1 Return on Equity 15.8 16.8 Liquidity (x) Current ratio 0.9 0.8 Quick ratio 0.8 0.7 Assets  Liabilities Management (Days) Average Collection Period 35.4 32.7 Average Inventory Period 9.3 11.2 Average Payable Period 41.7 43.1 Leverage  Coverage Ratios (x) Total debt to equity 0.5 0.5 Net debt to equity 0.4 0.4 Net debt to EBITDA 1.7 1.5 Interest coverage 11.4 12.6 Excluding non-recurring items Remark Assets & Liabilities Management based on 360 days Interest coverage = EBITDA/Interest Expenses Return on assets and return on equity during 2013 decreased from 2012 as the Company is in the process of expansion by opening new network hospitals in key strategic locations resulting in an increase of net ųxed assets of Baht 5,723 million together with an expansion of healthcare related businesses to accommodate rising healthcare demand. 90 Management discussion and analysis

Total debt to equity and net debt to equity remains unchanged at 0.5x and 0.4x respectively as of December 31, 2012 and as of December 31, 2013. In addition, Net debt to EBITDA increased from 1.5x as of December 31, 2012 to 1.7x as of December 31, 2013 while interest coverage ratio decreased slightly from 12.6x as of December 31, 2012 to 11.4x as of December 31, 2013. The leverage and coverage ratios are well within the ųnancial covenant of the long-term loans and debentures. In November 2013, TRIS Rating afųrms the Company rating at A+ with “Stable” outlook. The rating not only reŴect the Company strong capital base but also its leading market position as the largest private hospital operator in Thailand, the enhanced capacity of its facilities, large franchise network, experienced management team and capable physicians, high quality services, and modern medical equipment.

Increasing healthcare demand Domestic political uncertainty and political protest in Bangkok since late 4Q13 slightly decreased patient volume growth as it caused some inconvenience to patients especially those in the surrounding protest area. With the Company’s diversiųcation strategy by expanding our network hospitals in key strategic locations, the Company continued to expand our patient base. Thus, the Company believes that these negative effects will be temporary. We are conųdent that the long-term prospect of the Company is still intact as demand for healthcare continues to increase as a result of the rising income per capita especially for those in the rural area, people pay more attention to their health and aging population. The growth would also stimulated by medical tourism with many accolades from global medical tourism on value for money and the quality of care in Thailand. Also Thailand was ranked as the top travel destination for medical tourism for best value on a variety of healthcare according to Bloomberg. On the other hand, in terms of hospital bed supply in 2012, the number of bed in Thailand per population of 10,000 was still at 21 beds, well below global average at 27 beds according to World Health Organization. These favorable factors support our strategy to increase our network hospitals, enhance our clinical capabilities for secondary care and tertiary care together with multidisciplinary specialists, state of the art medical equipment and experienced staffs to accom- modate increasing demand of healthcare.

Expansion of network hospitals The Company has set a clear vision to establish strong footprints in key strategic locations both in Thailand and in neighboring countries to serve both Thai and international patients. The Company would also continue to enhance referral network by using the hub-and-spoke hospitals in each region. Hub hospitals would offer full range of tertiary care services with advanced medical equipment whereas the spoke hospitals would be smaller hospitals located in the surrounding provinces and would be the gateways for referring patients to the hubs for sophisticated procedures. During 2014-2016, the Company plans to open the following network hospitals:- Ļ Bangkok :- Bangkok Hospital Chinatown, Paolo Rangsit Hospital Ļ Upcountry :- Dibuk Hospital in Phuket, Sri-Rayong Hospital in Rayong, Bangkok Hospital Khon Kaen in Khon Kaen, Bangkok Hospital Chiangmai in Chiangmai, Jomtien Hospital and Samitivej Chonburi Hospital in Chonburi Ļ Abroad :- Royal Phnom Penh Hospital in Cambodia To mitigate the operational and ųnancial risk of these new hospitals, we plan to open all new hospitals in phases by gradually increase the bed capacity according to the patient demand. In addition, the new investment would also include expanding into healthcare related business i.e. pharmaceutical and medical supply to increase our corporate efųciency and capability going forward. 91 The Board of Directors’ Report on its Responsibility to the Financial Statements

The Board of Directors recognizes the importance of duties and responsibilities in ensuring that the Company practices good corporate governance, that the ųnancial statements in the 2013 Annual Report are accurate and fully disclosed, as well as in compliance with generally accepted accounting standards by selecting appropriate accounting policies and consistently adhering to those policies, with careful discretion. The Board of Directors has assigned the Audit Committee the task of reviewing the Company’s ųnancial statements and has been informed that the ųnancial statements are in compliance with generally accepted accounting standards by selecting appropriate accounting policies and consistently adhering to those policies. The ųnancial statements were carefully prepared with consideration of the suitable items to be presented and provide sufųcient disclosure in the notes. The Audit Committee has reported these opinions in the Audit Committee Report in the 2013 Annual Report and the Company’s 2013 Form 56-1.

Furthermore, the Board of Directors has put in place an efųcient internal control system to ensure that all accounting

The Board of Directors’ Report on its Responsibility to the Financial Statements information is recorded accurately and assets are safe-kept in order to prevent fraud or signiųcant damages.

In conclusion, the Board of Directors is of the opinion that the Company’s internal control system is satisfactory and reasonably believes the trustworthiness of the Company’s ųnancial statements as of 31st December 2013, which the auditor has reviewed in accordance with generally accepted accounting standards. Additionally, the ųnancial statements accurately show the signiųcant aspects of the Company’s ųnancial status and performance in accordance with generally accepted accounting standards.

(Mr. Prasert Prasarttong-Osoth, M.D.) CEO & President 92 Report of independent auditor

Report of independent auditor

To the Shareholders of Bangkok Dusit Medical Services Public Company Limited I have audited the accompanying consolidated ųnancial statements of Bangkok Dusit Medical Services Public Company Limited and its subsidiaries, which comprise the consolidated statement of ųnancial position as at 31 December 2013, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash Ŵows for the year then ended, and a summary of signiųcant accounting policies and other explanatory information, and have also audited the separate ųnancial statements of Bangkok Dusit Medical Services Public Company Limited for the same period. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ųnancial statements in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of ųnancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on these ųnancial statements based on my audit. I conducted my audit in accordance with Thai Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the ųnancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ųnancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the ųnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the ųnancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the ųnancial statements. I believe that the audit evidence I have obtained is sufųcient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the ųnancial statements referred to above present fairly, in all material respects, the ųnancial position of Bangkok Dusit Medical Services Public Company Limited and its subsidiaries and of Bangkok Dusit Medical Services Public Company Limited as at 31 December 2013, and their ųnancial performance and cash Ŵows for the year then ended, in accordance with Thai Financial Reporting Standards. Emphasis of matter I draw attention to Note 4 to the ųnancial statements regarding the change in accounting policy due to the adoption of Thai Accounting Standard 12 Income Taxes. The Company has restated the consolidated and separate ųnancial statements for the year ended 31 December 2012, presented herein as comparative information, to reŴect the adjustments resulting from such change. The Company has also presented the consolidated and separate statements of ųnancial position as at 1 January 2012 as comparative information, using the newly adopted accounting policy for income taxes. My opinion is not qualiųed in respect of this matter.

Wichart Lokatekrawee Certiųed Public Accountant (Thailand) No. 4451 EY Ofųce Limited (Formerly known as Ernst & Young Ofųce Limited) Bangkok: 28 February 2014 93 Statement of financial position 94 As at31December2013 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement offinancialposition The accompanyingnotesareanintegralpartofthe Total assets Total non-currentassets Others Leasehold rights Other non-currentassets Intangible assets Goodwill Land andbuildingsnotusedinoperation Property, premisesandequipment Investment properties Long-term loanstorelatedparties Other long-terminvestments Investments insubsidiarycompanies Investments inassociatedcompanies Restricted Long-term depositat Non-current assets Total currentassets Other currentassets Inventories Dividend receivable-relatedparties Short-term loanstorelatedparties Trade andotherreceivables Short-term investments Cash andcashequivalents Current assets Assets ų nancial institutiondeposits ų nancial institutions 9, 10,11 11, 20 Note 7, 8 19 18 17 16 11 15 14 13 12 11 11 11 7 7 7 31 December2013 76,399,014,686 10,229,031,258

10,944,814,666 38,874,981,340 13,092,169,493 66,169,983,428 ų 4,925,058,894 Consolidated 4,061,345,500 nancial statements. 240,642,204 967,951,181 654,920,311 602,007,543 260,698,513 500,695,841 197,598,728 918,672,840 120,375,963 20,683,895 10,418,441 5,979,333 As at - - -

68,460,980,936

31 December2012 10,609,368,928 33,151,946,067 12,864,094,347 59,375,084,533 9,085,896,403 4,287,063,795 3,589,575,612 150,337,990 779,882,276 267,768,130 253,524,385 552,715,404 568,719,716 633,123,001 222,795,000 495,775,237 ų (restated) 11,268,600 23,022,448 nancial statements As at - - - -

58,791,932,247 49,915,201,634 10,609,368,928 29,430,070,630 8,876,730,613 1,037,726,798 3,377,111,722 5,049,423,501 2,815,613,743 1 January2012 3,875,733,420 121,792,752 464,365,921 195,333,849 557,137,056 482,139,079 511,202,630 190,226,327 24,685,891 50,000,000 As at - - - -

31 December2013 55,032,634,864

27,529,788,589 51,356,469,929 3,676,164,935 6,934,566,575 5,733,377,121 9,035,363,113 1,756,130,780 396,459,238 291,522,819 601,681,200 514,357,513 282,378,259 100,923,649 912,718,302 884,799,028 Separate 22,975,502 14,000,000 21,580,198 As at - - - 12,978

50,456,221,280

ų 31 December2012 24,917,353,505 47,601,300,346 2,854,920,934 6,448,076,571 5,324,980,064 9,188,934,474 nancial statements 1,567,094,336 184,271,166 632,796,658 458,385,000 322,451,390 207,098,786 962,104,787 (restated) 24,734,463 99,317,055 19,547,968 91,267,248 7,797,600 As at - - - 10,209

41,213,735,061

23,925,320,165 38,311,231,980 2,902,503,081 4,978,103,389 1,665,538,184 4,876,099,654 1,735,973,111 1 January2012 1,520,306,827 (Unit: Baht) 106,061,020 510,876,287 425,816,327 230,927,282 307,097,286 829,289,509 14,455,744 72,988,099 14,872,145 As at - - - - 10,032

Statement of financial position - - 95 As at 3,051,032 6,927,699 48,526,497 942,752,305 436,300,000 148,516,084 108,620,182 375,896,197 106,791,206 397,328,233 158,023,562 (Unit: Baht) 1 January 2012 1,627,946,051 8,461,262,680 2,705,410,000 3,613,927,680 11,913,424,048

15,527,351,728 As at 6,150,454 39,514,847 11,436,066 74,862,285 (restated) 961,204,100 820,198,400 519,201,230 203,262,053 212,524,251 195,670,373 192,004,068 nancial statements 1,200,000,000 2,796,624,548 1,999,885,487 8,254,981,600 7,063,968,777 8,546,041,119 16,005,447,420 31 December 2012 ų

24,551,488,539 - As at 48,572,159 11,109,263 34,281,001 18,368,151 Separate 238,374,454 146,832,381 185,395,403 986,902,792 928,639,200 533,890,576 280,993,879 2,926,436,769 2,969,455,061 7,326,342,400 8,671,708,541 19,053,665,424 11,089,780,476

27,725,373,965 31 December 2013 - - As at 862,972,388 173,449,698 355,863,546 185,304,941 231,170,205 813,214,841 149,722,523 725,829,097 451,509,847 1 January 2012 8,461,262,680 1,331,731,918 6,951,172,278 3,391,190,815 1,815,833,234 7,578,470,562 18,321,757,449

25,900,228,011 As at - ü

nancial statements è 86,073,514 92,712,864 (restated) ų 667,591,078 131,391,804 525,972,754 889,645,572 606,750,181 2,276,914,656 8,558,261,019 7,063,968,777 1,108,655,624 1,226,985,669 1,225,104,808 3,614,105,602 1,999,885,487 18,701,309,161 31 December 2012

11,372,710,248 30,074,019,409 - As at 18,941,531 84,092,301 96,801,660 75,332,355 999,876,448 473,257,464 711,629,854 572,895,401 nancial statements. Consolidated 4,020,697,449 2,969,455,061 2,483,366,669 1,202,043,962 1,393,591,718 7,563,647,555 ų 21,994,093,127 11,089,780,476

11,761,316,777 33,755,409,904 31 December 2013 11 23 24 25 26 21 11 23 24 25 Note 4, 31 11, 22 ts ų nancial insitutions ų nance lease agreement ų nance lease agreements nancial institutions nancial institutions - net of current portion - net of current portion ų ų ų Deferred income Deferred tax liabilities Other non-current liabilities liabilities non-current Total liabilities Total Debentures - net of current portion Provision for long-term employee bene The accompanying notes are an integral part of the Liabilities under Current portion of debentures Income tax payable Accrued expenses Other current liabilities current liabilitie Total Non-current liabilities Long - term loans from Current portion of liabilities under Trade and other payables Trade Short-term loans from related parties Current portion of long-term loans from Liabilities and shareholders' equity Liabilities and shareholders' Current liabilities Bank overdrafts and short-term loans from Assets Statement of financial position (continued) position of financial Statement As at 31 December 2013 Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Public Company Dusit Medical Services Bangkok Statement of financial position 96 As at31December2013 Bangkok DusitMedicalServicesPublicCompanyLimitedanditssubsidiaries Statement offinancialposition(continued) The accompanyingnotesareanintegralpartofthe Total liabilitiesandshareholders'equity Total shareholders'equity Non -controllinginterests Equity attributabletoownersoftheCompany Retained earnings Share premium Share capital Shareholders' equity Assets of thesubsidiaries Issued andfullypaid-up Registered Other componentsofshareholders'equity Unappropriated Appropriated -statutoryreserve Difference fromshareholdingrestructure Premium onordinaryshares of Baht1each) 1,545,458,883 ordinaryshares and 1January2012: of Baht1each(31December2012 1,549,095,654 ordinaryshares of Baht1each) 1,553,391,408 ordinaryshares of Baht1each(1January2012: 1,700,004,771 ordinaryshares Note 29 27 27 31 December2013 76,399,014,686

18,686,664,352 20,481,530,880 40,680,570,238 42,643,604,782 ų 1,549,095,654 Consolidated (511,721,450) 1,700,004,771 1,963,034,544 nancial statements. 170,000,477 305,000,325 As at

68,460,980,936

31 December2012 15,158,377,702 20,022,497,644 36,853,326,760 38,386,961,527 1,545,458,883 (348,008,271) 1,700,004,771 1,533,634,767 170,000,477 305,000,325 ų (restated) nancial statements As at

58,791,932,247

31,467,853,926 20,022,497,644 32,891,704,236 9,141,940,478 1,545,458,883 1,553,391,408 1 January2012 1,423,850,310 297,617,455 155,339,141 305,000,325 As at

31 December2013 55,032,634,864

20,418,606,952 27,307,260,899 27,307,260,899 1,549,095,654 1,700,004,771 4,449,793,336 719,764,480 170,000,477 Separate As at - -

50,456,221,280

ų 31 December2012 19,959,573,716 25,904,732,741 25,904,732,741 1,545,458,883 1,700,004,771 3,436,163,822 nancial statements 793,535,843 170,000,477 (restated) As at - -

41,213,735,061

19,959,573,716 25,686,383,333 25,686,383,333 1,545,458,883 1,553,391,408 1,508,323,526 2,517,688,067 1 January2012 (Unit: Baht) 155,339,141 As at - -

Income statement 1.73 97 (Unit: Baht) - -

2012 47,620,553 202,430,001 449,760,125 2,670,531,160 1,545,458,883 (restated) (810,684,404) (165,745,854) 2,155,163,968 2,854,974,647 6,369,648,903 2,839,790,823 9,209,439,726 3,646,961,418 3,646,961,418 2,836,277,014 2,670,531,160 10,001,426,497 12,856,401,144 nancial statements 2.45 ų - - 2013 51,811,022 284,309,372 739,363,376 3,781,629,293 (119,658,205) 3,236,109,954 4,311,593,724 6,934,727,928 3,393,188,999 4,915,226,492 3,901,287,498 3,781,629,293 1,546,305,802 4,915,226,492 10,931,549,695 15,243,143,419 10,327,916,927 (1,013,938,994) Separate 5.08 2012 56,501,930 16,564,227 967,663,398 515,774,275 312,874,329 7,849,220,532 (restated) (849,405,902) 1,545,458,883 3,554,830,894 8,968,658,289 9,654,682,747 9,772,940,243 8,162,094,861 8,162,094,861 1,170,942,346 1,795,048,116 47,862,159,069 29,238,818,033 38,207,476,322 10,622,346,145 44,307,328,175 (1,610,845,382) nancial statements ų 4.05 2013 62,658,608 37,340,164 148,065,504 543,024,286 988,095,823 258,513,119 1,546,305,802 6,261,464,863 (957,027,814) 1,445,554,308 2,236,642,870 7,880,888,318 8,868,984,141 7,911,956,327 6,519,977,982 6,519,977,982 49,169,881,061 51,406,523,931 32,976,969,438 10,548,666,175 43,525,635,613 (1,391,978,345) Consolidated nancial statements. 11 11 13 11 31 Note ų 13, 14 11, 13, 14, 15 : nance expenses and income tax expenses nance expenses and income tax expenses ų ų t before income tax expenses t for the year t attributable to t attributable to equity holders of the Company t before share of income from investments in associated t before share of income from investments in associated t before ų ų ų ų Other income Revenue from sales of goods and foods Interest income Dividend income Gain on fair value adjustment of investments Others ų ų The accompanying notes are an integral part of the Finance expenses Pro Income tax expenses Pro Pro Equity holders of the Company Non-controlling interests of the subsidiaries Basic earnings per share Pro Pro companies, Share of income from investments in associated companies Pro average number of ordinary shares (shares) Weighted Total other income Total revenues Total Expenses Cost of hospital operations and goods sold Administrative expenses expenses Total Revenues operations Revenues from hospital Income statement Income For the year ended 31 December 2013 For the year ended 31 December Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Public Company Dusit Medical Services Bangkok Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Statement of comprehensive income For the year ended 31 December 2013

(Unit: Baht)

Statement of comprehensive income Consolidated ųnancial statements Separate ųnancial statements Note 2013 2012 2013 2012 (restated) (restated)

Proųt for the year 6,519,977,982 8,162,094,861 3,781,629,293 2,670,531,160 Other comprehensive income: Gain (loss) on change in value of available-for-sale investments (34,620,089) 3,837,812 (34,831,065) 3,604,996 Reversal gain on change in value of available-for-sale investments due to transfer of investment from other long-term investment to investment in associated company 13 - (1,097,718,335) - (1,097,718,335) Actuarial gain(loss) 45,731,961 (102,693,126) - (37,397,866) Exchange differences on translation of ųnancial statements in foreign currency 79,428,968 (34,518,057) - - Gain on revaluation of land - 507,588,660 - 379,325,656 Reversal revaluation surplus on land (30,498,400) - (38,940,298) - Transferred revaluation surplus on land to retained earnings due to disposal of land - - 13,671,410 - Share of other comprehensive income from associated companies (88,958,202) 114,186,053 - - Other comprehensive income for the year (28,915,762) (609,316,993) (60,099,953) (752,185,549)

Total comprehensive income for the year 6,491,062,220 7,552,777,868 3,721,529,340 1,918,345,611

Total comprehensive income attributable to: Equity holders of the Company 6,231,979,951 7,239,294,998 3,721,529,340 1,918,345,611 Non-controlling interests of the subsidiaries 259,082,269 313,482,870 6,491,062,220 7,552,777,868

The accompanying notes are an integral part of the ųnancial statements.

98 Statement of cash flows 99 764,124 (Unit: Baht) - - - - - 794,531 3,361,984 3,715,104 14,850,406 2012 14,055,135 22,484,630 664,350,916 (33,757,897) 810,684,404 (17,876,855) (restated) (202,430,001) 1,962,109,527 2,836,277,014 (2,155,163,968) nancial statements ų - - - 267,300 282,512 3,759,374 2013 95,095,189 29,005,709 (1,340,629) 671,522,651 106,980,684 (26,290,126) (51,821,248) (23,719,000) (42,797,157) (284,309,372) 3,901,287,498 1,013,938,994 2,155,752,425 (3,236,109,954) Separate - - - 1,914,699 1,061,037 3,361,984 4,620,158 2012 19,699,358 108,788,432 849,405,902 132,811,572 (56,501,930) (16,564,227) (42,057,894) (17,876,855) (restated) (967,663,398) 9,772,940,243 2,950,574,134 10,949,465,099 (1,795,048,116)

nancial statements ų - - 393,071 3,759,374 (998,172) 2013 46,212,437 18,889,707 44,185,109 (5,650,000) 238,534,018 170,455,972 957,027,814 (62,658,608) (37,340,164) (34,590,144) 7,911,956,327 (988,095,823) (148,065,504) 3,244,247,247 11,358,262,661 Consolidated nancial statements. ų t expenses ų t before income tax to ų ows from operating activities Ŵ Depreciation and amortisation expenses Write-off of assets Bad debts and allowance for doubtful accounts Loss on impairment of investments Loss on impairment of assets Reserve (reversal) of loss on deteriorated inventories Amortisation of deferred income Interest income Dividend income Interest expense Loss from liquidation of a subsidiary company Unrealised loss (gain) on foreign exchange Long-term employee bene Share of income from investments in associated companies Share of income from investments in associated companies Gain on fair value adjustment of investments loan Amortisation of expense for debentures, and Loss (gain) on disposal of property, premises and equipment Gain on fair value adjustment of investment properties t before income tax t from operating activities before changes ų ų net cash provided by (paid from) operating activities: net cash provided by (paid from) operating activities: in operating assets and liabilities Cash Pro Adjustments to reconcile pro Pro The accompanying notes are an integral part of the Statement of cash flows of cash Statement For the year ended 31 December 2013 For the year ended 31 December Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Public Company Dusit Medical Services Bangkok Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Statement of cash flows (continued) Statement of cash flows For the year ended 31 December 2013

(Unit: Baht) Consolidated ųnancial statements Separate ųnancial statements 2013 2012 2013 2012 (restated) (restated) Decrease (increase) in operating assets Trade and other receivables (630,306,305) (1,017,021,032) (19,068,127) (134,327,592) Inventories (38,755,146) 256,783,484 (8,315,772) 138,865,503 Other current assets (33,786,832) (28,545,237) (2,032,228) (4,675,823) Other non-current assets 41,752,388 (55,511,843) 1,081,690 (8,677,347) Increase (decrease) in operating liabilities Trade and other payables 41,819,197 (111,254,687) (19,219,869) (54,830,925) Accrued expenses 186,321,798 478,385,266 14,759,009 120,654,607 Other current liabilities 38,455,328 216,081,232 77,731,826 45,238,490 Provision for long-term employee beneųts (44,743,838) (18,758,494) (3,155,506) (5,223,796) Other non-current liabilities 33,872,899 150,774,655 (6,608,665) 85,212,862 Cash from operating activities 10,952,892,150 10,820,398,443 2,190,924,783 2,144,345,506 Cash received from interest income 55,909,755 42,783,342 273,702,572 187,557,719 Cash paid for interest expenses (904,758,643) (779,629,930) (968,787,432) (757,011,458) Cash received from tax refund 11,472,013 25,059,813 - - Cash paid for income tax expenses (1,588,516,843) (1,699,131,065) (154,679,598) (167,851,367) Net cash from operating activities 8,526,998,432 8,409,480,603 1,341,160,325 1,407,040,400

Cash Ŵows from investing activities Decrease (increase) in short-term investments 234,094,815 196,888,215 (2,769) (177) Decrease (increase) in restricted ųnancial institution deposits 26,695,070 1,663,443 (14,000,000) - Decrease (increase) in long-term ųnancial institution deposits (10,418,441) 50,000,000 - - Dividend received 479,035,232 280,599,833 3,243,907,554 2,147,366,368 Interest received from investment - 11,999,118 - 1,534,191 Cash received from disposal of investments in a subsidiary company 4,450 - 4,450 - Cash receipt from capital repayment due to liquidation of a subsidiary company - - 732,000 - Cash paid for purchase of investments in subsidiaries, associates and other company (380,523,177) (4,266,954,772) (2,558,428,362) (5,258,988,113) Cash received from disposal of investment property 821,028 - 821,028 - Cash paid for investment property (7,600,278) (19,620,675) (7,600,278) (19,620,675) Cash received from disposal of property, premises and equipment 17,202,857 37,051,249 153,759,119 16,203,628 Cash received from disposal of land and buildings not used in operation - - 52,133,497 - Cash paid for purchase of property, premises and equipment (7,344,224,009) (5,791,020,424) (1,275,006,273) (1,743,480,338) Cash paid for leasehold rights (426,710,772) (17,280,536) (311,870,772) - Increase in short-term loans to related parties - - (705,619,516) (83,639,987) Increase in long-term loans to related parties - - (1,003,918,500) (4,173,846,818) Cash received from long-term loans to related parties - - 638,318,600 683,988,290 Cash paid for purchase of intangible assets (207,292,837) (198,978,746) (137,848,552) (125,534,806) Net cash used in investing activities (7,618,916,062) (9,715,653,295) (1,924,618,774) (8,556,018,437) The accompanying notes are an integral part of the ųnancial statements. 100 Statement of cash flows (Unit: Baht) - - - - - 101 7,797,600 2012 46,787,509 12,479,609 10,676,268 17,291,190 (7,613,155) (5,616,348) 599,229,600 (restated) (684,307,800) 7,195,765,546 1,520,306,827 1,567,094,336 1,168,678,497 9,150,000,000 6,617,777,800 (7,950,000,000) (1,699,996,203) nancial statements ų ------2013 20,595,814 23,409,404 (9,739,646) (1,516,975) 129,812,221 462,670,007 772,494,893 189,036,444 (21,090,705) (820,198,400) 4,600,000,000 6,991,621,900 1,567,094,336 1,756,130,780 (5,800,000,000) (2,781,671,189) (2,000,000,000) Separate - - - - 2012 33,715,736 11,268,600 (7,613,155) 185,539,074 106,149,426 599,229,600 (85,132,092) (restated) (286,157,808) (209,638,666) (266,547,297) 1,020,014,884 3,875,733,420 3,589,575,612 9,150,000,000 6,617,777,800 (8,155,066,935) (4,930,611,323) (1,699,996,203) nancial statements ų - - - - 5,979,333 2013 83,922,862 25,741,169 (1,516,975) 471,769,888 159,762,669 462,670,007 (73,976,301) (980,091,623) (113,668,086) (269,760,322) (436,312,482) 4,600,000,000 6,991,621,900 3,589,575,612 4,061,345,500 (5,808,766,861) (2,000,000,000) (2,781,671,189) Consolidated nancial statements. ų

nancial institutions ų nancial institutions ų nance lease agreements ų nance lease agreements nancing activities ų ų ows information: Ŵ nancing activities ų nancial institutions nancial institutions ų ų ows from Ŵ Increase (decrease) in accounts payable-property, premises and equipment The accompanying notes are an integral part of the Decrease in accounts payable - investment property Increase in payable to construction - retention Dividend receivable issuing shares Acquire investment in subsidairy company by Repayment of bank overdraft and short-term loans Repayment of bank overdraft and short-term loans from Cash received from long-term loans from Cash from related parties Increase in short-term loans loans Cash received from bank overdraft and short-term from Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental cash Cash received from issue of debentures Cash paid for redemption of debentures Cash received from issue share capital Cash paid for investment in subsidiary companies from non - controlling interests Dividend paid interests Dividend paid by subsidiaries to non- controlling Net cash from (used in) Repayment of long-term loans from Repayments of liabilities under Non-cash items: Assets acquired under Statement of cash flows (continued) of cash Statement For the year ended 31 December 2013 For the year ended 31 December Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Public Company Dusit Medical Services Bangkok Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Statement of changes in shareholders' equity For the year ended 31 December 2013 Statement of changes in shareholders' equity Retained earnings Difference from Issued and Premium on shareholding paid-up ordinary shares restructure Appropriated- share capital Note statutory reserve Unappropriated

Balance as at 31 December 2011 - As previously reported 1,545,458,883 20,022,497,644 305,000,325 155,339,141 9,003,545,079 Cumulative effect of change in accounting policy for deferred tax 4 - - - - 138,395,399 Balance as at 31 December 2011 - As restated 1,545,458,883 20,022,497,644 305,000,325 155,339,141 9,141,940,478 Proųt for the year - restated - - - - 7,849,220,532 Other comprehensive income for the year - restated - - - - (118,125,769) Total comprehensive income for the year - restated - - - - 7,731,094,763 Dividend paid 28 - - - - (1,699,996,203) Statutory reserve 29 - - - 14,661,336 (14,661,336) Share of interest paid for convertible bonds treated as equity securities from an associated company - - - - - Change in non-controlling interests of subsidiaries from purchase investmentin subsidiaries - - - - - Decrease in non-controlling interests of subsidiaries from dividend of subsidiaries - - - - - Balance as at 31 December 2012 1,545,458,883 20,022,497,644 305,000,325 170,000,477 15,158,377,702

Balance as at 31 December 2012 - As previously reported 1,545,458,883 20,022,497,644 305,000,325 170,000,477 15,081,806,199 Cumulative effect of change in accounting policy for deferred tax 4 - - - - 76,571,503 Balance as at 31 December 2012 - As restated 1,545,458,883 20,022,497,644 305,000,325 170,000,477 15,158,377,702 Issue of share capital 14.4, 27 3,636,771 459,033,236 - - - Proųt for the year - - - - 6,261,464,863 Other comprehensive income for the year - - - - 48,492,976 Total comprehensive income for the year - - - - 6,309,957,839 Dividend paid 28 - - - - (2,781,671,189) Share of interest paid for convertible bonds treated as equity securities from an associated company - - - - - Change in non-controlling interests of subsidiaries from purchase investment in subsidiaries - - - - - Decrease in non-controlling interests of subsidiaries from dividend of subsidiaries - - - - - Balance as at 31 December 2013 1,549,095,654 20,481,530,880 305,000,325 170,000,477 18,686,664,352 The accompanying notes are an integral part of the ųnancial statements. 102 Statement of changes in shareholders' equity

(Unit: Baht) Consolidated ųnancial statements

Equity attributable to owners of the Company Other components of shareholders’ equity Equity Surplus Exchange Share of other Surplus of Total equity attributable to Total on changes differences on components of investment over attributable to non-controlling shareholders' in value of translation of shareholders' book value of Total other owners of interest equity available-for- Revaluation ųnancial equity from subsidiary components of sale surplus on statements in associated companies shareholders' the Company of the investments land foreign currency companies equity subsidiaries

1,372,254,087 1,955,482,986 (110,055,942) 86,143,604 (2,340,473,927) 963,350,808 31,995,191,880 1,422,037,390 33,417,229,270

(274,470,080) (391,263,273) - - - (665,733,353) (527,337,954) 1,812,920 (525,525,034)

1,097,784,007 1,564,219,713 (110,055,942) 86,143,604 (2,340,473,927) 297,617,455 31,467,853,926 1,423,850,310 32,891,704,236 ------7,849,220,532 312,874,329 8,162,094,861 (1,093,885,401) 506,139,996 (34,410,371) 130,356,011 - (491,799,765) (609,925,534) 608,541 (609,316,993) (1,093,885,401) 506,139,996 (34,410,371) 130,356,011 - (491,799,765) 7,239,294,998 313,482,870 7,552,777,868 ------(1,699,996,203) - (1,699,996,203) ------

- - - (5,847,717) - (5,847,717) (5,847,717) - (5,847,717)

- - - - (147,978,244) (147,978,244) (147,978,244) (118,566,321) (266,544,565)

------(85,132,092) (85,132,092) 3,898,606 2,070,359,709 (144,466,313) 210,651,898 (2,488,452,171) (348,008,271) 36,853,326,760 1,533,634,767 38,386,961,527

4,897,959 2,588,116,731 (144,466,313) 210,651,898 (2,488,452,171) 170,748,104 37,295,511,632 1,531,563,232 38,827,074,864

(999,353) (517,757,022) - - - (518,756,375) (442,184,872) 2,071,535 (440,113,337)

3,898,606 2,070,359,709 (144,466,313) 210,651,898 (2,488,452,171) (348,008,271) 36,853,326,760 1,533,634,767 38,386,961,527 ------462,670,007 - 462,670,007 ------6,261,464,863 258,513,119 6,519,977,982 (34,623,403) (30,498,400) 76,102,117 (88,958,202) - (77,977,888) (29,484,912) 569,150 (28,915,762) (34,623,403) (30,498,400) 76,102,117 (88,958,202) - (77,977,888) 6,231,979,951 259,082,269 6,491,062,220 ------(2,781,671,189) - (2,781,671,189)

- - - (7,761,611) - (7,761,611) (7,761,611) - (7,761,611)

- - - - (77,973,680) (77,973,680) (77,973,680) 244,293,809 166,320,129

------(73,976,301) (73,976,301) (30,724,797) 2,039,861,309 (68,364,196) 113,932,085 (2,566,425,851) (511,721,450) 40,680,570,238 1,963,034,544 42,643,604,782 103 Bangkok Dusit Medical Services Public Company Limited and its subsidiaries Statement of changes in shareholders' equity For the year ended 31 December 2013

Retained earnings Statement of changes in shareholders' equity Issued and Premium on Appropriated- paid-up ordinary shares share capital statutory Note reserve

Balance as at 31 December 2011 - As previously reported 1,545,458,883 19,959,573,716 155,339,141 Cumulative effect of change in accounting policy for deferred tax 4 - - - Balance as at 31 December 2011 - As restated 1,545,458,883 19,959,573,716 155,339,141 Proųt for the year - restated - - - Other comprehensive income for the year - restated - - - Total comprehensive income for the year - restated - - - Dividend paid 28 - - - Statutory reserve 29 - - 14,661,336 Balance as at 31 December 2012 1,545,458,883 19,959,573,716 170,000,477

Balance as at 31 December 2012 - As previously reported 1,545,458,883 19,959,573,716 170,000,477 Cumulative effect of change in accounting policy for deferred tax 4 - - - Balance as at 31 December 2012 - As restated 1,545,458,883 19,959,573,716 170,000,477 Issue of share capital 14.4, 27 3,636,771 459,033,236 - Proųt for the year - - - Other comprehensive income for the year - - - Total comprehensive income for the year - - - Dividend paid 28 - - - Balance as at 31 December 2013 1,549,095,654 20,418,606,952 170,000,477

The accompanying notes are an integral part of the ųnancial statements. 104 Statement of changes in shareholders' equity

(Unit: Baht) Separate ųnancial statements Other components of shareholders’ equity Surplus Total Total other shareholders' on changes Revaluation components of in value of equity available-for-sale surplus on shareholders' Unappropriated investments land equity

2,516,503,383 1,372,093,352 513,311,055 1,885,404,407 26,062,279,530

1,184,684 (274,418,670) (102,662,211) (377,080,881) (375,896,197)

2,517,688,067 1,097,674,682 410,648,844 1,508,323,526 25,686,383,333 2,670,531,160 - - - 2,670,531,160 (37,397,866) (1,094,113,339) 379,325,656 (714,787,683) (752,185,549) 2,633,133,294 (1,094,113,339) 379,325,656 (714,787,683) 1,918,345,611 (1,699,996,203) - - - (1,699,996,203) (14,661,336) - - - - 3,436,163,822 3,561,343 789,974,500 793,535,843 25,904,732,741

3,433,450,234 4,451,679 987,468,125 991,919,804 26,100,403,114

2,713,588 (890,336) (197,493,625) (198,383,961) (195,670,373)

3,436,163,822 3,561,343 789,974,500 793,535,843 25,904,732,741 - - - - 462,670,007 3,781,629,293 - - - 3,781,629,293 13,671,410 (34,831,065) (38,940,298) (73,771,363) (60,099,953) 3,795,300,703 (34,831,065) (38,940,298) (73,771,363) 3,721,529,340 (2,781,671,189) - - - (2,781,671,189) 4,449,793,336 (31,269,722) 751,034,202 719,764,480 27,307,260,899

105 Bangkok Dusit Medical Services Public Company Limited and its subsidiaries

Notes to consolidated financial statements For the year ended 31 December 2013

1. General information Bangkok Dusit Medical Services Public Company Limited ("the Company") is a public company under Thai laws and domiciled in Thailand. The Company is principally engaged in the hospital business. The registered ofųce of the Company is at 2, Soi Soonvijai 7, New Petchburi Road, Bang Kapi, Huaykwang, Bangkok. Notes to consolidated financial statements

2. Basis of preparation 2.1 The ųnancial statements have been prepared in accordance with Thai Financial Reporting Standards enunciated under the Accounting Profession Act B.E. 2547 and their presentation has been made in compliance with the stipulations of the Notiųcation of the Department of Business Development dated 28 September 2011, issued under the Accounting Act B.E. 2543. The ųnancial statements in Thai language are the ofųcial statutory ųnancial statements of the Company. The ųnancial statements in English language have been translated from the Thai language ųnancial statements. The ųnancial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. 2.2 Basis of consolidation a) The consolidated ųnancial statements include the ųnancial of Bangkok Dusit Medical Services Public Company Limited (“the Company”) and the following subsidiaries (“the subsidiaries”) as follows: Percentage of shareholding Company's name Nature of business by the Company (percent) 2013 2012 Held by the Company Samitivej Public Co., Ltd. Hospital 95.76 95.76 Bangkok Hospital Hatyai Co., Ltd. Hospital 98.79 98.79 Bangkok Phuket Hospital Co., Ltd. Hospital 99.69 99.68 BNH Medical Center Co., Ltd. Hospital 91.48 91.48 Bangkok Hospital Phrapradaeng Co., Ltd. Hospital 84.00 79.00 Bangkok Hospital Pattaya Co., Ltd. Hospital 97.27 97.27 Bangkok Hospital Rayong Co., Ltd. Hospital 100.00 100.00 Bangkok Hospital Samui Co., Ltd. Hospital 100.00 100.00 Bangkok Hospital Trad Co., Ltd. Hospital 99.76 99.76 Wattanavej Co., Ltd. Hospital 99.69 99.69 Bangkok Ratchasima Hospital Co., Ltd. Hospital 90.94 90.36 National Healthcare Systems Co., Ltd. Central lab 74.02 74.02 (held by the Company at 74.02% and indirectly held by subsidiaries at 24.66%) Bio Molecular Laboratories (Thailand) Co., Ltd. Central lab 95.00 95.00 Angkor Pisith Co., Ltd. Hospital 80.00 80.00 Phnom Penh Medical Services Co., Ltd. Hospital 100.00 100.00 Royal Rattanak Medical Services Co., Ltd. Hospital 70.00 70.00 B.D.M.S. International Medical Services Co., Ltd. Hospital 100.00 100.00 BDMS Accounting Co., Ltd. (formerly known Accounting service 100.00 100.00 as “Asia International Healthcare Co., Ltd.”) 106 Notes to consolidated financial statements

Percentage of shareholding Company's name Nature of business by the Company (percent) 2013 2012 New Petchburi Medical Services Co., Ltd. Dissolved company - 100.00 (liquidated in 2013) Bangkok Health Insurance Public Co., Ltd. Health insurance 99.94 99.94 (formerly known as “Bangkok Health Insurance Co., Ltd.”) Royal Bangkok Healthcare Co., Ltd. Management service 100.00 100.00 Greenline Synergy Co., Ltd. Technology and 100.00 100.00 information service Bangkok Hospital Kao Yai Co., Ltd. Hospital 100.00 100.00 BDMS Training Co., Ltd. Training business 100.00 100.00 Prasit Patana Public Co., Ltd. Investment 98.43 98.32 Paolo Medic Co., Ltd. Hospital 100.00 100.00 Paolo Samutprakarn Co., Ltd. Hospital 93.45 93.30 Siam Medical Co., Ltd. Hospital 85.73 85.69 Thai Medical Center Public Co., Ltd. Hospital 99.76 99.76 Bangkok Premier Life Insurance Broker Co., Ltd. Life insurance broker 100.00 100.00 Bangkok Hospital Chiangmai Co., Ltd. Hospital 100.00 100.00 Bangkok Hospital Udon Co., Ltd. Hospital 100.00 100.00 Bangkok Khon Kaen Hospital Co., Ltd. Hospital 100.00 - The Medicpharma Co., Ltd. Production and distribution of medicines 86.89 - Thonburi Medical Center Public Co., Ltd. Hospital 26.33 - (Formerly known as “Krungdhon Hospital Public Co., Ltd.”) (held by the Company at 26.33% and indirectly held by subsidiary at 29.02%) Bangkok Hospital Surat Co., Ltd. Hospital 100.00 - BDMS Inter Pte. Ltd. Investment 100.00 - N Health Asia Pte. Ltd. Investment 100.00 - Samitivej Chonburi Co., Ltd. Hospital 100.00 - Bangkok Hospital Phitsanulok Co., Ltd. Hospital 100.00 -

Held by subsidiaries National Healthcare Systems Co., Ltd. Central lab 25.97 25.97 Samitivej Sriracha Co., Ltd. Hospital 69.75 68.06 Irving Sheridan SE Co., Ltd. Assets management for 96.03 96.03 healthcare business

First Health Food Co., Ltd. Restaurant and distributing 100.00 100.00 health food products and facility management and investments 107 Percentage of shareholding Company's name Nature of business by the Company (percent) 2013 2012 Sodexo Healthcare Support Services (Thailand) Co., Ltd. Restaurant and distributing 74.00 74.00

Notes to consolidated financial statements health food products and facility management SV Holding Co., Ltd Investment 100.00 - A.N.B. Laboratories Co., Ltd. Manufacturer and 100.00 100.00 distributor of medicine and pharmaceutical products Thonburi Medical Center Public Co., Ltd. Hospital 29.02 - (Formerly known as “Krungdhon Hospital Public Co., Ltd.”) Phyathai 1 Hospital Co., Ltd. Hospital 100.00 100.00 Phyathai 2 Hospital Co., Ltd. Hospital 99.16 99.15 Phyathai 3 Hospital Co., Ltd. Hospital 98.22 98.20 Sriracha Nakorn General Hospital Public Co., Ltd. Hospital 74.07 66.53

All subsidiaries incorporated in Thailand except B.D.M.S. International Medical Services Co., Ltd., Angkor Pisith Co., Ltd., Phnom Penh Medical Services Co., Ltd. and Royal Rattanak Medical Services Co., Ltd. which were registered in Cambodia and BDMS Inter Pte. Ltd. and N Health Asia Pte. Ltd. registered in Singapore.

b) Subsidiaries are fully consolidated, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases. c) The ųnancial statements of the subsidiaries are prepared using the same signiųcant accounting policies as the Company. d) The assets and liabilities in the ųnancial statements of overseas subsidiary companies are translated to Baht using the exchange rate prevailing on the end of reporting period, and revenues and expenses translated using monthly average exchange rates. The resulting differences are shown under the caption of “Exchange differences on translation of ųnancial statements in foreign currency” in the statements of changes in shareholders’ equity. e) Material balances and transactions between the Company and its subsidiaries have been eliminated from the consolidated ųnancial statements. f) Non-controlling interests represent the portion of proųt or loss and net assets of the subsidiaries that are not held by the Company and are presented separately in the consolidated proųt or loss and within equity in the consolidated statement of ųnancial position. g) In recording the acquisition of additional shares of subsidiaries (repurchase of shares from minority shareholders) when the fair value of the net assets acquired is lower than the cost of the investment the difference has been presented in other components of shareholders' equity in the statement of ųnancial position under the caption of “Surplus on investments in subsidiary companies arising as a result of acquisition of additional shares at a price higher than net book value at the acquisition date”. When the fair value of the net assets acquired is higher than the cost of the investment the difference has been presented in other components of shareholders' equity in the statement of ųnancial position under the caption of “Lower of investment in subsidiary companies arising as a result of acquisition of additional shares at a price lower than net book value at the acquisition date”.

2.3 The separate ųnancial statements, which present investments in subsidiaries and associates under the cost method, have been prepared solely for the beneųt of the public. 108 Notes to consolidated financial statements

3. New accounting standards Below is a summary of accounting standards that became effective in the current accounting year and those that will become effective in the future. (a) Accounting standards that became effective in the current accounting year Accounting standards: TAS 12 Income Taxes TAS 20 (revised 2009) Accounting for Government Grants and Disclosure of Government Assistance TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates Financial Reporting Standard: TFRS 8 Operating Segments Accounting Standard Interpretations: TSIC 10 Government Assistance - No Speciųc Relation to Operating Activities TSIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets TSIC 25 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders

Accounting Treatment Guidance for Transfers of Financial Assets

These accounting standards, ųnancial reporting standard, accounting standard interpretations and accounting treatment guidance do not have any signiųcant impact on the ųnancial statements, except for the following accounting standard.

TAS 12 Income Taxes This accounting standard requires an entity to identify temporary differences between the carrying amount of an asset or liability in the statement of ųnancial position and its tax base and recognise the tax effects as deferred tax assets or liabilities subjecting to certain recognition criteria. The Company and its subsidiaries have changed this accounting policy in this current year and restated the prior year’s ųnancial statements, presented as comparative information, as though the Company and its subsidiaries had initially recognised the tax effects as deferred tax assets or liabilities. The cumulative effect of this change in accounting policy has been presented in Note 4 to the ųnancial statements.

(b) Accounting standards that will become effective in the future Effective date Accounting Standards: TAS 1 (revised 2012) Presentation of Financial Statements 1 January 2014 TAS 7 (revised 2012) Statement of Cash Flows 1 January 2014 TAS 12 (revised 2012) Income Taxes 1 January 2014 TAS 17 (revised 2012) Leases 1 January 2014 TAS 18 (revised 2012) Revenue 1 January 2014 TAS 19 (revised 2012) Employee Beneųts 1 January 2014 TAS 21 (revised 2012) The Effects of Changes in Foreign 1 January 2014 Exchange Rates TAS 24 (revised 2012) Related Party Disclosures 1 January 2014 109 Notes to consolidated financial statements 110 The Companyanditssubsidiaries’ managementbelievesthattheseaccountingstandards, accounting standardinterpretations and the TFRIC 18 TFRIC 17 TFRIC 13 TFRIC 12 TFRIC 10 TFRIC 7 TFRIC 5 TFRIC 4 TFRIC 1 Financial ReportingStandardInterpretations: TSIC 32 TSIC 29 TSIC 27 TSIC 15 Accounting StandardInterpretations: TFRS 8(revised2012) TFRS 5(revised2012) TFRS 4 TFRS 3(revised2012) TFRS 2(revised2012) Financial ReportingStandards: TAS 38(revised2012) TAS 36(revised2012) TAS 34(revised2012) TAS 31(revised2012) TAS 28(revised2012) ų nancial statementsfortheyear whentheyareinitiallyapplied. ų Transfers ofAssetsfromCustomers Distributions ofNon-cashAssetstoOwners Customer LoyaltyProgrammes Service ConcessionArrangements Interim FinancialReportingandImpairment Financial ReportinginHyperin Applying theRestatementApproachunderTAS 29 Restoration andEnvironmentalRehabilitationFunds Rights toInterestsarisingfromDecommissioning, Determining whetheranArrangementcontainsaLease Restoration andSimilarLiabilities Changes inExistingDecommissioning, Intangible Assets–Web SiteCosts Service ConcessionArrangements:Disclosures Evaluating theSubstanceofTransactions InvolvingtheLegalFormofaLease Operating Leases-Incentives Operating Segments Non-current AssetsHeldforSaleandDiscontinuedOperations Insurance Contracts Business Combinations Share-based Payment Intangible Assets Impairment ofAssets Interim FinancialReporting Interests inJointVentures Investments inAssociates nancial reportingstandardsinterpretations willnothaveanysigni Ŵ ationary Economies ų nancial reportingstandards, Effective date 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2016 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 1 January2014 ų cant impacton Notes to consolidated financial statements

4. Cumulative effect of the change in accounting policies due to the adoption of new accounting standard During the current year, the Company and its subsidiaries made the change described in Note 3 to the ųnancial statements to its signiųcant accounting policies, as a result of the adoption of TAS 12 Income Taxes. The cumulative effect of the change in the accounting policies has been separately presented in the statements of changes in shareholders’ equity. The amounts of adjustments affecting the statements of ųnancial position and the statements of comprehensive income are summarised below. (Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements As at As at As at As at As at As at 31 December 31 December 1 January 31 December 31 December 1 January 2013 2012 2012 2013 2012 2012 Statements of ųnancial position Increase in deferred tax assets 364,435 344,183 374,278 124,804 79,897 66,133 Increase in deferred tax liabilities 1,758,027 1,571,169 1,706,010 271,636 275,567 442,029 Deferred tax liabilities - net 1,393,592 1,226,986 1,331,732 146,832 195,670 375,896 Decrease in other components of shareholders' equity 502,476 518,756 665,733 179,941 198,384 377,081 Increase in unappropriated retained earnings 59,019 76,572 138,395 33,109 2,714 1,185 Increase in non-controlling interests of the subsidiaries 4,874 2,072 1,813 - - - Decrease in other non-current liabilities (Reclassiųcation) 773,831 786,874 806,207 - - - Deferred tax liabilities from acquisitions (Note 14.3.3 and 14.4) 181,178 - - - - - (Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements For the years ended For the years ended For the years ended For the years ended 31 December 31 December 31 December 31 December 2013 2012 2013 2012 Statements of comprehensive income Decrease (increase) in income tax (4,313) (90,139) 30,395 (7,821) Increase in other comprehensive income 3,928 175,551 18,443 188,046 Increase (decrease) in total comprehensive income attributable to equity holders of the Company (2,187) 87,565 48,838 180,225 Increase (decrease) in total comprehensive income attributable to non-controlling interest of the subsidiaries 1,802 (2,154) - - Basic earnings per share Increase (decrease) in proųt attributable to equity holders of the Company (6,416) (87,727) 30,395 (7,821) Increase (decrease) in basic earnings per share (Baht) (0.004) (0.057) 0.020 (0.005) 111 Notes to consolidated financial statements 112 recordedasa Investments inavailable-for-salesecuritiesarestatedatfairvalue. Changes inthefairvalueofthesesecuritiesare b) recordedinpro Investments insecuritiesheldfortradingarestatedatfairvalue. Changesinthefairvalueofthesesecuritiesare a) 5.5 Investments estimated Inventoriesarevaluedatlowerofcost(weightedaveragebasis)ornetrealisablevalue.Netvalue isthe 5.4 Inventories experiences andanalysisofdebtaging. estimated lossesthatmaybeincurredincollectionof receivables. Theallowanceisgenerallybasedoncollection Trade accountsreceivablearestatedatthenetrealisablevalue.Allowancefordoubtful isprovidedforthe 5.3 Trade accountsreceivableandallowancefordoubtful an original Cashandcashequivalentsconsistofinhandat 5.2 Cashandcashequivalents Dividendsare recognisedwhentherighttoreceivedividendsisestablished. Dividends Interestincome isrecognisedonanaccrualbasisbasedtheeffectiverate. Interest income program isamortisedtoincomeoveraperiodof10years. gradually amortisedtoincomeovermembershipperiod.ForcashreceivedinadvancefromtheLifePrivilege Membership income Serviceincomeisrecognisedwhenserviceshavebeenrendered. Service income the buyer. Salesofgoodsandfoodsarerecognisedwhenthesigni Revenue fromsalesofgoodsandfoods recognised asincomewhen Revenuesfromhospitaloperations,mainlyconsistingof medicalfees,hospitalroomsalesandmedicinesales,are Hospital operations 5.1 Revenuerecognition 5. Significantaccountingpolicies Membership incomeiscashreceiptfromsalesofmembershipcardswhichinitiallyrecordedasdeferredand

Sales aretheinvoicedvalue,excludingvalueaddedtax,ofgoodsandfoodsuppliedafterdeductingdiscounts. selling priceintheordinarycourseofbusinesslessestimated costsnecessarytomakethesale. maturity of3monthsorlessandnotsubjecttowithdrawalrestrictions.

separate iteminshareholders’ equity,andwillberecordedinpro ų t orloss. services havebeenrenderedormedicinedelivered. ų cant risksandrewardsofownershipthegoodshavepassedto ų nancial institutionsandhighlyliquidinvestmentwith ų t orlosswhenthesecuritiesare sold. Notes to consolidated financial statements 113 5 - 8 years 5 - 30 years 5 - 50 years 3 - 10 years 3 - 15 years nancial statements using the cost method. nancial statements using es as other investments, are stated at cost es as other investments, ų ų nancial statements using the equity method. nancial statements ų nancial statements as follows: ų cient regularity to ensure that the carrying amount does not cient regularity to ensure that the carrying ų ce equipment ų t or loss. However, the revaluation decrease is charged to the other comprehensive income t or loss. However, the revaluation decrease is charged to the other comprehensive ų t or loss in the period when the asset is derecognised. t or loss in the period when the asset is ų t or loss when incurred. fair value at the end of reporting period. ų values. Revaluations are made with suf - When an asset’s carrying amount is decreased as a result of a revaluation of the Company and its subsidiaries’ assets, - When an asset’s carrying amount is decreased as a result of a revaluation of Land improvements Building, structures and building improvements Medical tools and equipment and machines Structure equipment, furniture and of Vehicles differ materially from the revaluation are dealt with in the Differences arising from the decrease is recognised in pro - When an asset’s carrying amount is increased as a result of a revaluation of the Company and its subsidiaries’ the heading of “Revaluation surplus assets, the increase is credited directly to other comprehensive income under the extent that it reverses a revaluation on land”. However, a revaluation increase will be recognised as income to decrease of the same asset previously recognised as an expense. on land” in respect of the same asset. to the extent that it does not exceed an amount already held in “Revaluation surplus on a straight-line basis over the following Depreciation of premises and equipment is calculated by reference to their cost estimated useful lives: c) maturity, are recorded at amortised one year and expected to be held to in debt securities, both due within Investments cost. with the by the effective rate method on debt securities is amortised/accreted The premium/discount income. presented as an adjustment to the interest amount amortised/accreted d) Company classi equity securities, which the Investments in non-marketable Property, premises and equipment/Depreciation 5.7 are stated at cost less accumulated depreciation and Land is stated at revalued amount. Buildings and equipment (if any). allowance for loss on impairment of assets and subsequently revalued by an independent professional Land initially recorded at cost on the acquisition date, appraiser to its fair in value (if any). of allowance for loss on diminution net e) the consolidated in associates are accounted for in Investments f) separate and associates are accounted for in the Investments in subsidiaries is based on the latest bid price of the last working day of the year. The fair value of marketable securities 5.6 Investment properties costs. Subsequent to initial recognition, Investment properties are measured initially at cost, including transaction investment changes in the value of investment properties properties are stated at fair value. Any gains or losses arising from are recognised in pro the difference between the net disposal proceeds and the carrying amount of On disposal of investment properties, the asset is recognised in pro Notes to consolidated financial statements 114 circumstances indicatethatthe carryingvaluemaybeimpaired. Goodwill iscarriedatcostless anyaccumulatedimpairmentlosses.Goodwillistestedfor impairmentannuallyandwhen immediately recognisedasgain inpro net assetsacquired.Ifthefairvalueofacquired exceedsthecostofbusinesscombination,excessis Goodwill isinitiallyrecordedatcost,whichequalstotheexcess ofcostbusinesscombinationoverthefairvalue are received. Acquisition-related costsareaccountedforasexpensesin theperiodsinwhichcostsareincurredandservices or attheproportionateshareofacquiree’sidenti For eachbusinesscombination,theacquirermeasuresnon-controlling interest,ifany,intheacquireeeitheratfairvalue value attheacquisitiondateofconsiderationtransferred, and theamountofanynon-controllinginterestinacquiree. 5.10 Goodwill/Businesscombination The intangibleassetwith charged topro amortisation methodofsuchintangibleassetsarereviewedatleasteach impairment wheneverthereisanindicationthattheintangibleassetmaybeimpaired.Theamortisationperiodand the assets arecarriedatcostlessanyaccumulatedamortisationandimpairmentlosses(ifany). acquisition whileintangibleassetsacquiredinothercasesarerecognisedatcost.Followingtheinitialrecognition,inta 5.9 Intangibleassets that anentityincursinconnectionwiththeborrowingoffunds. All otherborrowingcostsareexpensedintheperiodtheyincurred.Borrowingconsistofinterestand substantial periodoftimetogetreadyforitsintendeduseorsalearecapitalisedaspartthecostrespectiveasse 5.8 Borrowingcosts is derecognised. expected fromitsuseordisposal.Anygainlossarisingondisposalofanassetisincludedinpro Business combinationsareaccountedforusingtheacquisitionmethodwithcostofbeingfair Computer software5-10years Intangible assetswith Intangible assetsacquiredthroughbusinesscombinationareinitiallyrecognisedattheirfairvalueonthedateof Borrowing costsdirectlyattributabletotheacquisition,constructionorproductionofanassetthatnecessarilytakesa An itemofproperty,premisesandequipmentisderecognisedupondisposalorwhennofutureeconomicbene No depreciationisprovidedonlandand Depreciation attributedtotheoriginalcostportionisincludedindeterminingincome. ų t orloss. ų nite usefullivesisasfollow: ų nite livesareamortisedonasystematicbasisovertheeconomicusefullifeandtestedfor ų t orloss. ų xed assetsunderconstructionandinstallation. ų able netassets. ų nancial yearend.Theamortisationexpenseis ų t orlosswhentheasset ų ngible ts are ts.

Notes to consolidated financial statements e, ed ų 115 ects current Ŵ cers with authority in ų t or loss on a straight line t from the synergies of the t from the synergies ų ų nance charges, are included in other ų c to the asset. In determining fair value less costs to ų t or loss over the lease period. The property, premises or t or loss over the lease period. The property, ų t or loss. Impairment losses relating to goodwill cannot be reversed in losses relating to goodwill cannot be t or loss. Impairment ų t or loss. However in cases where property was previously revalued and the ų cant portion of the risks and rewards of ownership is retained by the lessor are classi cant portion of the risks and rewards of ų uence over the Company, key management personnel, directors and of uence over the Company, key management ows are discounted to their present value using a pre-tax discount rate that re ows are discounted to their present value using a pre-tax discount rate that nance leases is depreciated over the useful life of the assets. nance leases is depreciated over the useful Ŵ ų Ŵ ects the amount that the Company and its subsidiaries could obtain from the disposal of the ects the amount that the Company and its subsidiaries could obtain from the Ŵ cant in ų nance leases. Finance leases are capitalised at the lower of the fair value of the leased assets and the present nance leases. Finance leases are capitalised ų ed as ų For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the in a business combination is allocated impairment testing, goodwill acquired For the purpose of They also include associated companies and individuals which directly or indirectly own a voting interest in the Company and individuals which directly or indirectly own a voting interest in the Company They also include associated companies Related parties comprise enterprises and individuals that control or are controlled by the Company, whether directly individuals that control or are controlled by the Company, whether directly Related parties comprise enterprises and Leases of assets where a signi Leases of property, premises or equipment which transfer substantially all the risks and rewards of ownership are which transfer substantially all the risks and rewards of ownership are Leases of property, premises or equipment At the end of each reporting period, the Company and its subsidiaries perform impairment reviews in respect of the At the end of each reporting period, the Company and its subsidiaries perform In the assessment of asset impairment if there is any indication that previously recognised impairment losses may no In the assessment of asset impairment if there is any indication that previously An impairment loss is recognised in pro

that gives them signi Company’s cash generating units (or group of cash-generating units) that are expected to bene units (or group of cash-generating Company’s cash generating control with the Company. or indirectly, or which are under common future periods. transactions 5.11 Related party The outstanding rental obligations, net of value of the minimum lease payments. 5.13 Operating leases classi combination. The Company estimates the recoverable amount of each cash-generating unit (or group of cash-generating of each cash-generating unit (or estimates the recoverable amount combination. The Company is less than the carrying amount of the cash-generating unit goodwill relates. Where the recoverable units) to which the loss is recognised in pro amount, an impairment operations. the planning and direction of the Company’s 5.12 Long-term rental agreements is charged to pro long-term payables, while the interest element equipment acquired under the estimated future cash property, premises and equipment and other intangible assets whenever events or changes in circumstances indicate that property, premises and equipment and other intangible assets whenever events amount of an asset, which is the higher an asset may be impaired. An impairment loss is recognised when the recoverable carrying amount. In determining value in us of the asset’s fair value less costs to sell and its value in use, is less than the as operating leases. Payments made under operating leases are recognised as expenses in pro as operating leases. Payments made under basis over the period of the lease. 5.14 Impairment of assets longer exist or may have decreased, the Company and its subsidiaries estimate the asset’s recoverable amount. longer exist or may have decreased, the Company and its subsidiaries estimate market assessments of the time value of money and the risks speci by a valuation model that, based on sell, an appropriate valuation model is used. These calculations are corroborated information available, re up to the amount of the previous revaluation was taken to equity, a part of such impairment is recognised in equity revaluation. asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. asset in an arm’s length transaction between knowledgeable, willing parties, after Notes to consolidated financial statements 116 bene upon retirementunderlaborlaw.TheCompanyanditssubsidiaries treattheseseverancepaymentobligationsasade the Company’sanditssubsidiariescontributionsarerecognisedasexpenseswhenincurred. contributed byemployeesandtheCompanyitssubsidiaries.Thefund’sassetsareheldinaseparatetrustfund and 1 Short-term employeebene 5.17 Employeebene Gains andlossesonexchangeareincludedindeterminingincome. end ofreportingperiod. Monetary assetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedintoBahtattheexchangerateruling the currency ofthatentity. functional currency.Itemsofeachentityincludedintheconsolidated 5.16 Foreigncurrencies 5.15 Leaseholdrights which exceedsthecarryingamountthatwouldhavebeendetermined,istreatedasarevaluationincrease. had noimpairmentlossbeenrecognisedfortheassetinprioryears. attributable toareversalofanimpairmentlossshallnotexceedthecarryingamountthatwouldhavebeendetermined the asset’srecoverableamountsincelastimpairmentlosswasrecognised.Theincreasedcarryingofasset A previouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheassumptionsusedtodetermine an adjustmenttothebeginning balanceofretainedearningsintheyear2011. which exceedstheliabilitythat wouldhavebeenrecognisedatthesamedateunder previous accountingpolicy,through income. Forthe actuarial techniques,usingtheprojectedunitcreditmethod. ost-employment bene The Companyanditssubsidiarieshaveobligationsinrespect oftheseverancepaymentsitmustmaketoemployees De The Companyanditssubsidiariesemployeeshavejointlyestablishedaprovidentfund.fundismonthly De Salaries, wages,bonusesandcontributionstothesocialsecurityfundarerecognisedasexpenseswhenincurred. Transactions inforeigncurrenciesaretranslatedintoBahtattheexchangeraterulingdateoftransaction. The consolidatedandseparate Leasehold rightsareamortisedonthestraight-linebasisoverleaseperiod. Such reversalisrecognisedinpro Actuarial gainsandlossesarising frompost-employmentbene The obligationunderthede ų t plan. ų ų ned bene ned contributionplans ų ų rst-time adoptionofTAS 19EmployeeBene t plans ų ts ų ts ų ts ų ned bene ų nancial statementsarepresentedinBaht,whichisalsotheCompanyanditssubsidiaries’ ų t orlossunlesstheassetiscarriedatarevaluedamount,inwhichcasereversal, ų t planisdeterminedbyaprofessionallyquali ų ts, theCompanyelectedtorecognise thetransitionalliability, ų ts arerecognisedimmediately inothercomprehensive ų nancial statementsaremeasuredusingthefunctional ų ed independentactuarybasedon ų ned Notes to consolidated financial statements nancial ų 117 nancial institution deposits, ų nancial position derivative ų ts will be required to settle the obligation, and a ts will be required to ų t will be available to allow all or part of the deferred ų nancial position included bank overdrafts and short-term ų cient taxable pro ų nancial position included cash and cash equivalents, short-term investments, ų t will be available against which such deductible temporary differences and tax losses t will be available against which such deductible ų ow of resources embodying economic bene ow of resources embodying

Ŵ x ts determined in accordance with tax legislation. ų nancial institutions, trade and other payables, short-term loans from related parties, long-term loans, liabilities nancial institutions, trade and other payables, short-term loans from related parties, ų nance leases and debentures. ų Deferred tax Provisions for vacation with the Company's which is calculated in accordance subsidiaries have set up provisions for vacation The Company and its trade and other receivables, short-term loans and long-term loans to related parties, restricted trade and other receivables, short-term loans and long-term loans to related parties, carried forward can be utilised. At each reporting date, the Company and its subsidiaries review and reduce the carrying amount of deferred tax assets to the extent that it is no longer probable that suf reliable estimate can be made of the amount of the obligation. reliable estimate can be made of the amount ta 5.19 Income the tax bases of assets and liabilities and their Deferred income tax is provided on temporary differences between period, using the tax rates enacted at the end of the reporting period. carrying amounts at the end of each reporting for all taxable temporary differences while they The Company and its subsidiaries recognise deferred tax liabilities it is temporary differences and tax losses carried forward to the extent that recognise deferred tax assets for all deductible probable that future taxable pro tax asset to be utilised. The Company and its subsidiaries record deferred tax directly to shareholders' equity if the tax relates to items that are recorded directly to shareholders' equity. instruments 5.20 Financial on the statement of Financial assets carried and investments. Financial liabilities carried on the statement of loans from under and its subsidiaries have no policy to hold any off-statement of The Company instruments for speculative or trading purpose. 5.21 Interest rate swap contracts of interest to be received from or paid to the counterparty under an interest rate swap contract is The net amount recognised as income or expenses on an accrual basis. and deferred tax. tax expense represents the sum of corporate income tax currently payable Income tax Current the accounts at the amount expected to be paid to the taxation authorities, based Current income tax is provided in on taxable pro policy and formula, taking into consideration the employee's salary, the number of years of service and the unused vacation salary, the number of years of service taking into consideration the employee's policy and formula, been adjusted annually. day. This provision has 5.18 Provisions as a result of a past event, and its subsidiaries have a present obligation are recognised when the Company Provisions out it is probable that an Notes to consolidated financial statements 118 and recogniseschangesinthe fairvalueinpro Investment properties The determinationofwhatis“signi been asigni Impairment ofequityinvestments rate inordertocalculatethepresentvalueofthosecash to makeestimatesofcash Intangible assets to thereview. carrying amount.Thisrequiresjudgementsregardingforecastoffuturerevenuesandexpensesrelatingtotheassetssubject basis andrecordimpairmentlossesintheperiodwhenitisdeterminedthattheirrecoverableamountlowerthan the independent valuerusingmarketapproach.Suchvaluationisbasedoncertainassumptionsandestimates. lives andresidualvalueswhenthereareanychanges. lives andresidualvaluesoftheCompany’sitssubsidiaries’premisesequipmenttoreviewestimateuseful Property, premisesandequipment/Depreciation among otherthings,debtcollectionexperience,theagingpro Allowance fordoubtfulaccounts into considerationtermsandconditionsofthearrangement. use judgmentregardingwhethersigni Leases judgments andestimatesareasfollows: and estimatesaffectreportedamountsdisclosuresactualresultscoulddifferfromtheseestimates.Signi management tomakesubjectivejudgmentsandestimatesregardingmattersthatareinherentlyuncertain.These . Significantaccountingjudgmentsandestimates 6. The Companyanditssubsidiaries presentinvestmentpropertiesatthefairvalueestimated byanindependentappraiser, The Companyanditssubsidiariestreatsavailable-for-saleinvestments andotherinvestmentsasimpairedwhentherehas The initialrecognitionandmeasurementofintangibleassets, andsubsequentimpairmenttesting,requiremanagement In addition,themanagementisrequiredtoreviewproperty,premisesandequipmentforimpairmentonaperiodical The Companyanditssubsidiariesmeasurelandatrevaluedamounts.Fairvaluefromrevaluationisdeterminedby In determiningdepreciationofpremisesandequipment,themanagementisrequiredtomakeestimatesuseful In determiningallowancesfordoubtfulaccounts,themanagementneedstomakejudgmentandestimatesbasedupon, In determiningwhetheraleaseistobeclassi The preparationof

ų cant orprolongeddeclineinthefairvaluebelowtheircost whereotherobjectiveevidenceofimpairmentexists. ų nancial statementsinconformitywithgenerallyacceptedaccountingprinciplesattimesrequires Ŵ ows tobegeneratedbytheassetorcashgeneratingunits andtochooseasuitablediscount ų cant” or“prolonged”requiresjudgementofthemanagement. ų cant risksandrewardsofownershiptheleasedassethavebeentransferred,taking ų t orloss.Thevaluationinvolves certainassumptionsandestimates. ų ed asanoperatingleaseor Ŵ ows. ų le ofoutstandingdebtsandtheprevailingeconomicconditions. ų nance lease,themanagementisrequiredto ų cant Notes to consolidated financial statements

cant 10 ų - - (10) 2012 1,567,094 1,567,104 1,567,094 119 (Unit: Thousand Baht) nancial statements ų - (13) 214,013 (14,000) 2013 1,556,131 1,770,144 1,756,131 Separate ows. - Ŵ 742,149 2012 (23,022) (267,768) 3,138,217 3,880,366 3,589,576 nancial statements ų 539,655 (10,418) (20,684) 2013 (120,376) 3,673,169 4,212,824 4,061,346 Consolidated xed deposits, bills of exchange, mutual funds and government ų ts. ų ows to be generated by the asset or the cash generating unit and to by the asset or the cash generating ows to be generated t plans Ŵ ų t plan is determined based on actuarial techniques. Such determination is made t plan is determined based on actuarial ų ned bene ų ned bene ų t will be available against which the temporary differences and losses can be utilised. Signi t will be available against which the temporary ts under de ų ų Cash and deposits at banks Fixed deposits, notes, mutual funds and government bonds Less: Fixed deposits, notes with maturities of more than 3 months investments) (short-term deposit) Fixed deposits, notes with maturities of more than 3 months (long-term Restricted bank deposits cash equivalents cash and Total The initial recognition and measurement of goodwill and other intangible assets, and subsequent impairment testing, other intangible assets, and subsequent and measurement of goodwill and The initial recognition Deferred tax assets are recognised for deductible temporary differences and unused tax losses to the extent that it is differences and unused tax losses to are recognised for deductible temporary Deferred tax assets The Company and its subsidiaries have contingent liabilities arising from litigation. The Company's management has used liabilities arising from litigation. The Company's management has used The Company and its subsidiaries have contingent The obligation under the de As at 31 December 2013, bank deposits in saving accounts, bonds carried interests between 0.13 and 3.25 percent per annum (2012: between 0.13 and 3.40 percent per annum). bonds carried interests between 0.13 and 3.25 percent per annum (2012: between 7. Cash and cash equivalents Cash and cash equivalents consist of the following: require management to make estimates of cash require management Goodwill and intangible assets Goodwill and intangible value of those cash rate in order to calculate the present choose a suitable discount probable that taxable pro Deferred tax assets the the amount of deferred tax assets that can be recognised, based upon management judgement is required to determine taxable pro likely timing and level of estimate future Post-employment bene judgment to assess the outcome of the litigation. In cases of loss, the Company and its subsidiaries will record provision for litigation. In cases of loss, the Company and its subsidiaries will record provision judgment to assess the outcome of the In cases where it has assessed that no damage will arise from the litigation, contingent liabilities in their books of account. based on various assumptions, including discount rate, future salary increase rate, mortality rate and staff turnover rate. based on various assumptions, including Litigation the Company and its subsidiaries will not record provision for contingent liabilities at the end of the reporting period. the Company and its subsidiaries will not Notes to consolidated financial statements 120 As at 31December2013and2012,theaginganalysisofoutstandingtradeaccountsreceivableisasfollows: 10. Trade accountsreceivable Tradeandotherreceivables 9. government agenciesandstateenterprisesasguarantee. of guaranteesissuedbythebanksonbehalfCompanyanditssubsidiarycompaniesbankdepositsplacedwith TheserepresentbankdepositsthattheCompanyanditssubsidiarycompanieshaveplacedwithbankstosecureletters 8. Restrictedfinancialinstitutionsdeposits Total tradeandotherreceivables-net Other receivables-unrelatedparties Other receivables-relatedparties Trade receivables-unrelatedparties-net Trade receivables-relatedparties Total trade accountsreceivable Total trade accounts receivable-unrelatedparties–net Less: Allowancefordoubtfulaccounts Total tradeaccountsreceivable-unrelatedparties over12months 6-12months 3-6months Lessthan3months Unrelated parties Total tradeaccountsreceivable-relatedparties over12months 6-12months 3-6months Lessthan3months Related parties ı net Consolidated Consolidated 4,925,059 4,673,669 4,680,196 4,673,669 5,104,796 3,870,470 219,801 (431,127) 2013 2013 25,062 376,132 285,228 572,966 6,527 6,527 1,356 4,765 382 24 ų ų nancial statements nancial statements 4,287,064 4,029,369 4,031,646 4,029,369 4,337,054 3,374,010 234,929 (307,685) 022012 2012 022012 2012 20,489 224,223 238,351 500,470 2,277 2,277 1,997 278 - 2 Separate Separate (209,969) 884,799 766,301 2013 782,067 766,301 976,270 174,409 692,662 2013 27,218 75,514 15,766 50,828 58,371 15,766 15,213 506 11 36 ų ų nancial statements nancial statements (Unit: ThousandBaht) (Unit: ThousandBaht) (126,998) 962,105 800,365 822,039 800,365 927,363 110,271 129,413 601,912 79,578 60,488 21,674 85,767 21,674 21,086 570 - 18 Notes to consolidated financial statements - - 5.0 0.1 0.6 92.1 36.1 61.2 70.0 83.3 268.2 293.7 190.3 575.8 207.4 2012 1,874.1 xed assets ų 121 (Unit: Million Baht) nancial statements ų - - 0.1 49.3 36.5 45.6 80.2 59.6 10.4 64.9 686.8 234.7 476.4 250.2 430.4 2013 2,773.1 Separate ------0.8 0.6 32.3 10.0 157.9 2012 Pricing and lending policy Pricing and lending nancial statements ų For the years ended 31 December ------9.0 32.3 15.3 104.6 2013 Consolidated The same prices as purchases from unrelated parties The same prices as purchases from unrelated Based on the price charged to normal customers Based on the price charged agreements Rates as stipulated in Based on the price charged to normal customers Rates as stipulated in agreements banks Interest rate close to that charged by commercial condition of Prices are dependent on market price and the cant business transactions with individuals or related parties, which have with individuals or related parties, cant business transactions ų xed assets ų Transaction cant intercompany transactions are as follows: cant intercompany transactions are as ų Associated companies services Revenue from hospital operations and lab Dividend income (Note 13) Other income Service cost Other expenses Dividend payment Subsidiary companies Revenue from hospital operations and lab services Consulting and management fee income Interest income Dividend income (Note 14) Gain on disposal of asset Other income Service cost Consulting and management fee expenses Other expenses Interest expenses Revenue from hospital operation and lab services Revenue from hospital from consulting and management Revenue and expenses Revenue from sales of goods Rental income and rental expenses Interest charge of inter-company loan Purchases and sales of Purchases of investments The signi The 11. Related party transactions Related 11. subsidiaries had signi The Company and its parties. between the Company and those related commercial terms and bases agreed upon been concluded on of those transactions. Below is a summary (Unit: Million Baht) For the years ended 31 December

Consolidated ųnancial statements Separate ųnancial statements 2013 2012 2013 2012 Notes to consolidated financial statements Individuals or related companies Revenue from hospital operations and lab services 7.7 3.6 2.5 1.3 Dividend income (Note 15) 28.0 8.0 28.0 8.0 Other income 21.8 11.7 7.3 0.1 Service cost 3.6 2.5 0.5 0.9 Other expenses 57.6 35.5 33.3 13.7 Dividend payment 193.0 134.2 187.8 134.2 Labor law compensation 15.2 - 15.2 -

The outstanding balances of the above transactions as at 31 December 2013 and 2012 have been separately shown in the statement of ųnancial position as follows: (Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements 2013 2012 2013 2012 Trade accounts receivable - related parties Associated companies 4,886 1,601 2,162 630 Subsidiary companies - - 12,512 20,905 Related companies 1,641 676 1,092 139 Total trade accounts receivable - related parties 6,527 2,277 15,766 21,674 Dividend receivable - related parties An associated company 5,979 3,471 - - A related company - 7,798 - 7,798 Total dividend receivable - related parties 5,979 11,269 - 7,798 Other accounts receivable - related parties Consulting and management fee receivable Subsidiary companies - - 42,381 30,612 Total - - 42,381 30,612 Others Associated companies 10,279 17,451 - 5 Subsidiary companies - - 27,561 29,842 Related companies 14,783 3,038 5,572 29 Total 25,062 20,489 33,133 29,876 Total other accounts receivable - related parties 25,062 20,489 75,514 60,488 122 Notes to consolidated financial statements

(Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements 2013 2012 2013 2012

Leasehold rights - related parties (included in other non-current assets) Associated companies 290,442 274,062 - - Related parties 72,861 78,576 - - Total leasehold rights - related parties 363,303 352,638 - - Deposits and long-term prepaid expense - related parties (included in other non-current assets) Associated company - 2,700 - 2,700 Subsidiary companies - - 4,599 6,029 Total deposits - related parties - 2,700 4,599 8,729 Trade accounts payable - related parties Associated companies 38,021 75,356 27,056 53,220 Subsidiary companies - - 95,381 72,989 Related companies 56 27 - - Total trade accounts payable - related parties 38,077 75,383 122,437 126,209 Other accounts payable - related parties Associated companies 8,539 7,059 5,600 4 Subsidiary companies - - 86,423 88,233 Related companies 2,661 3,611 - 1,008 Total other accounts payable - related parties 11,200 10,670 92,023 89,245 Deposits - related parties (included in other non-current liabilities) Associated company 15 61 15 61 Subsidiary companies - - 2,457 2,399 Related companies 99,218 - 99,218 - Total deposits - related parties 99,233 61 101,690 2,460

Movement of loans to and loans from related parties during the year are summarised as follows: (Unit: Thousand Baht) Separate ųnancial statements 31 December 2012 Increase Decrease 31 December 2013 Short-term loans to related parties Subsidiary companies 207,099 778,077 (72,458) 912,718 Total short-term loans to related parties 207,099 778,077 (72,458) 912,718 Long-term loans to related parties Subsidiary companies 5,324,980 1,046,716 (638,319) 5,733,377 Total long-term loans to related parties 5,324,980 1,046,716 (638,319) 5,733,377 Short-term loans from related parties Subsidiary companies 2,796,625 1,501,413 (1,371,601) 2,926,437 Total short-term loans from related parties 2,796,625 1,501,413 (1,371,601) 2,926,437 123 Notes to consolidated financial statements 124 The Company Management agreement short termandlongloanstosubsidiariestotalingBaht6,646.1million(2012:5,532.1million). while principalisrepayableonthebasisstipulatedinagreements.Asat31December2013,Companyhasoutstanding LIBOR plus its subsidiaries.TheCompanychargedinterestonloanstorelatedpartiesattheFixedDepositRateplus monthly servicefeesattherate stipulatedintheagreements. Asubsidiary companyhasenteredintomanagementagreements withanothersubsidiarycompanywherebyithastopay subsidiaries wherebyhavetopaymonthlyservicefeethe subsidiaryattheratesstipulatedinagreements. Asubsidiarycompanyhasenteredintofoodprovidingandmaintenanceserviceagreementswiththe Companyand subsidiaries wherebyhavetopaymonthlyservicefeesthe subsidiaryattheratestipulatedinagreements. Asubsidiarycompanyhasenteredintoinformationtechnologymanagement agreementswiththeCompanyand have topaymonthlyserviceandmanagementfeesthe subsidiary attheratesstipulatedinagreements. AsubsidiarycompanyhasenteredintoserviceandmanagementagreementswiththeCompany subsidiarieswhich Service andmanagementagreement the ratestipulatedinagreement. company foritshospitaloperations,expiringon30April2014.Thatsubsidiaryhastopayamonthlyrental fee at agreement.Inaddition,suchanothersubsidiary companyenteredintoanagreementtorentthebuildingfromasubsidiary the building, expiringon31December2015.Thesubsidiarycompanyhastopayamonthlyrentalfeeattheratestipulated in Asubsidiarycompanyenteredintoanagreementtorentlandfromanotherfor constructionofa The Subsidiaries Subsequently, thesubsidiaryextendedagreementto30April2016. operations wherebythesubsidiarycompanyhastopayamonthlyrentalfeeatratestipulatedinagreement. InMay2004,asubsidiarycompanyenteredintothree-yearagreementtorentlandfromtheCompanyforuseinhospital The Company Long termrentalagreement company istoreceivemanagementincomeatacertainpercentageoftotaloperationresultasstipulatedintheagreement. AsubsidiarycompanyhasenteredintoaHospitalManagementAgreementwith subsidiarycompanies.The The Subsidiaries revenue fromhospitaloperations. TheCompanyprovideshospitalmanagementservicestoitssubsidiaries,fortheremunerationratesarebasedonnet Short-term andlong-termloanstorelatedparties The Companyhasenteredintoshort-termloanagreementsandlong-termwithtermsof3-8years ų xed rateperannumandMLRminus ų xed rateperannumstipulatedintheagreementpayableonamonthlybasis ų xed rateperannum, Notes to consolidated financial statements - - 0.6 93,063 93,063 91,267 (1,796) 2012 2012 115.0 115.6 125 (Unit: Million Baht) (Unit: Thousand Baht) nancial statements nancial statements ų ų - - 2.1 (455) 132.1 134.2 2013 2013 ts for their directors and 101,379 101,379 100,924 ų Separate Separate 0.6 71,834 37,854 (2,620) 2012 2012 779,882 672,814 782,502 115.0 115.6 nancial statements nancial statements ų ų 2.1 81,421 60,530 (1,621) 2013 2013 778,343 920,294 918,673 132.1 134.2 Consolidated Consolidated nancial institution amount of Baht 3.9 million for an associated nancial institution amount of Baht 3.9 million ų ts ų ts ų ts ų Medicines and medical supplies Reagent Supplies and others Total Less: Provision for deteriorated inventories Inventories - net Short-term employee bene Post-employment bene Total 12. Inventories management as below. Air ambulance service agreement Air ambulance service Associated company the Company. an air ambulance service agreement with an associated company entered into On 1 September 2007, The agreement stipulates service commenced and is renewable. a period of 3 years from the date the The agreement is for Company has extended is to earn from the Company. The service fee that the associated company the monthly minimum months ended on 30 September 2015. the agreement for 25 with related parties Guarantee obligations facility long-term loan amount of USD 2.4 million (2012: USD 3.1 million) and overdraft The Company has guaranteed 1.0 million) for an overseas subsidiary company. amounting to USD 1.0 million (2012: USD facility with A subsidiary company has guaranteed credit company. Directors and management’s bene and 2012, the Company and its subsidiaries had bene During the year ended 31 December 2013 Notes to consolidated financial statements 126 26.3 millionshares, amountofBaht1,762.2million. Asaresult,theCompany'sshareholding inthatcompanyincreased to23.8 In thesecondquarterof2012, CompanyadditionallypurchasedordinarysharesofBumrungrad HospitalPublicCo.,Ltd.fort million waspresentedinthestatements ofcomprehensiveincome. associated companiesamounting toBaht1,372.3milliondeducteddeferredtaxof274.4 million,netamountofBaht1,097.9 in valueofavailable-for-saleinvestments duetotransferofinvestmentfromotherlong-term investmentstoin of incomebyBaht1,795.0million, underthecaption“Gainonfairvalueadjustmentofinvestment” andreversedgainonchange Company realisedgainfromtheremeasurementofitspreviously heldshareholdingtofairvalueintheconsolidatedstatement holds totally20.28percentageofshareholdinginthatcompany andchangesitsstatustobecomeanassociatedcompany.The total of44.2millionshares,amountBaht2,234.9million,representing 6.06percentofshareholding.Asaresult,theCompa In the Bumrungrad HospitalPublicCo.,Ltd. 13.1 Additionalinvestmentsinassociatedcompanies 13. Investmentsinassociatedcompanies intheconsolidated Total investmentsinassociatedcompanies heldbysubsidiarycompanies-net Total investmentsinassociatedcompanies Less: Allowanceforimpairmentofinvestment heldbythesubsidiarycompanies Total investmentsinassociatedcompany Al GhaithBangkokDusitManagementServicesLLC. Sodexo SupportServices(Thailand)Co.,Ltd. the subsidiarycompanies Associated companiesheldby heldbytheCompanyandsubsidiaries Total investmentsinassociatedcompanies heldbytheCompany Total investmentsinassociatedcompanies Bumrungrad HospitalPublicCo.,Ltd. Udon Pattana(1994)Co.,Ltd. Thonburi MedicalCentrePublicCo.,Ltd. Ramkhamhaeng HospitalPublicCo.,Ltd. Bangkok HelicopterServicesCo.,Ltd. Phnom PenhFirstPropertyCo.,Ltd. Siem ReapLandInvestmentCo.,Ltd. S.R. PropertyInvestmentCo.,Ltd. Cool &JoyCo.,Ltd. The MedicpharmaCo.,Ltd. Associated companiesheldbytheCompany

at 15.26%andindirectlyheldbysubsidiary9.83%) (formerly knownas“KrungdhonHospitalPublicCo.,Ltd.”) Company’s name ų rst quarterof2012,theCompanyadditionallypurchasedordinary sharesofBumrungradHospitalPublicCo.,Ltd.for ų nancial statements

(held bytheCompany

distribution ofmedicines Production oftelevision and radioprogram Natures of Production and Management Management business Real estate Real estate Real estate Hospital Hospital Hospital Hospital services services Service Baht 21.4million Baht 730million Baht 300million Baht 150million Baht 120million Baht 100million Riel 20million Riel 20million Riel 20million Baht 5million Baht 5million Paid-up Capital UAE DIRHAM 0.15 million % Shareholding 2013 30.00 26.00 23.88 25.09 38.24 49.00 49.00 49.00 49.00 30.00 - - 2012 30.00 26.00 23.88 25.09 20.01 38.24 49.00 49.00 49.00 49.00 30.00 49.00 13,085,522 13,092,169 3,039,994 9,812,320 ų 2013 191,331 nancial statements Equity Method 31,673 4,531 2,132 2,472 1,069 7,040 6,647 6,647 Consolidated (393) 393 - - 12,857,289 12,864,094 9,523,489 2,835,589 185,430 104,179 165,167 2012 34,977 6,805 6,412 6,805 3,532 1,764 2,093 1,069 393 - 1,459,801 9,035,363 7,452,961 ų 2013 nancial statements 50,859 69,952 (Unit: ThousandBaht) 1,500 Cost Method 101 101 Separate 88 - - 9,188,934 7,452,961 1,459,800 8 percent. 101,072 2012 52,500 69,952 50,859 1,500 otal of 101 101 88 ny Notes to consolidated financial statements ------6,004 6,300 2012 55,061 200,828 268,193 127 (Unit: Thousand Baht) (Unit: Thousand Baht) 2012 139,594 nancial statements 7,231,356 the year ų 12,901,915 20,272,865 ------2013 44,100 55,061 331,265 430,426 Dividend received during Separate - - 317 303 683 2,658 5,329 5,404 (3,157) 2012 27,327 431,080 497,719 967,663 Fair values as at 31 December - nancial statements 2013 ų 8,626,237 15,299,230 23,925,467 - - 226 240 736 (20) 1,820 5,901 6,214 (3,304) 2013 348,343 627,940 988,096 Consolidated in associated companies Share of income/(loss) from investments Company’s name Company’s name (formerly known as “Krungdhon Hospital Public Co., Ltd.”) (formerly known as “Krungdhon Hospital Public Co., Ltd.”) Bumrungrad Hospital Public Co., Ltd. Total Ramkhamhaeng Hospital Public Co., Ltd. Thonburi Medical Centre Public Co., Ltd. Udon Patana (1994) Co., Ltd. Bumrungrad Hospital Public Co., Ltd. Associated companies held by the subsidiary companies Sodexo Support Services (Thailand) Co., Ltd. Al Ghaith Bangkok Dusit Management Services LLC. Total Associated companies held by the Company The Medic Pharma Co., Ltd. Cool & Joy Co., Ltd. S.R. Property Investment Co., Ltd. Siem Reap Land Investment Co., Ltd. Phnom Penh First Property Co., Ltd. Bangkok Helicopter Services Co., Ltd. Ramkhamhaeng Hospital Public Co., Ltd. Thonburi Medical Centre Public Co., Ltd. 13.2 Details of share of income and dividend received from the associated companies are set out below. 13.2 Details of share of income and dividend to become its status from associated company The Medicpharma Co., Ltd. had changed In the second quarter of 2013, as mentioned in Note 14.3.2. a subsidiary company Thonburi Medical Centre Public Co., Ltd. (Formerly known as “Krungdhon Hospital Public Co., Ltd.”) Public Co., Ltd. (Formerly known Thonburi Medical Centre from associated company Public Co., Ltd. had changed its status quarter of 2013, Thonburi Medical Center In the second company as mentioned in Note 14.3.1. to become a subsidiary Ltd. The Medicpharma Co., Below are fair values of investments in associated companies that are listed companies on the Stock Exchange of Thailand Below are fair values of investments in associated companies that are listed companies Notes to consolidated financial statements 128 13.3 Belowisasummaryof 4 Investmentsinsubsidiarycompanies 14. on audited representing 99percent(2012:96percent)oftotalshareincomefromallassociatedcompanieswerecalculatedbased Thailand fortheyearended31December2013ofBaht976million(2012:threeassociatedcompanies931million) Shareofincomefrominvestmentinthreeassociatedcompanieswhicharelistedcompany on theStockExchangeof Services LLC. Al GhaithBangkokDusitManagement Sodexo SupportServices(Thailand)Co.,Ltd companies Associated companiesheldbythesubsidiary Bumrungrad HospitalPublicCo.,Ltd. Udon Patana(1994)Co.,Ltd. (formerlyknownas“KrungdhonHospital Public Co.,Ltd.”) Thonburi MedicalCentrePublicCo.,Ltd. Ramkhamhaeng HospitalPublicCo.,Ltd. Bangkok HelicopterServicesCo.,Ltd. Phnom PenhFirstPropertyCo.,Ltd. Siem ReapLandInvestmentCo.,Ltd. S.R. PropertyInvestmentCo.,Ltd. Cool &JoyCo.,Ltd. The MedicPharmaCo.,Ltd. Associated companiesheldbytheCompany Bangkok RatchasimaHospitalCo.,Ltd. Wattanavej Co.,Ltd. Bangkok Trat Hospital Co.,Ltd. Bangkok SamuiHospitalCo.,Ltd. Bangkok RayongHospitalCo.,Ltd. Bangkok PattayaHospitalCo.,Ltd. Bangkok PhrapradaengHospitalCo.,Ltd. BNH MedicalCenterCo.,Ltd. Bangkok PhuketHospitalCo.,Ltd. Bangkok HospitalHatyaiCo.,Ltd. Samitivej PublicCo.,Ltd. Company’s name Company’s name ų nancial statementsofthosecompanies. ų nancial informationofassociatedcompanies Nature ofbusiness Baht 730million Baht 300million Baht 120million Baht 100million Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Riel 20million Riel 20million Riel 20million Baht 5million Baht 5million UAE DIRHAM 0.15 million 2013 adu aia oa iblte Total revenues Total liabilities Paid-up capital - - Baht 730million Baht 300million Baht 150million Baht 120million Baht 100million Baht 1,000million Paid-up Capital Baht 21million Baht 300million Baht 180million Baht 250million Baht 150million Baht 400million Baht 280million Baht 105million Baht 586million Baht 500million Baht 500million Riel 20million Riel 20million Riel 20million

Baht 5million Baht 5million UAE DIRHAM 0.15 million 2012 As at31December 17,251.5 1,068.3 7,783.1 2013 100.00 100.00 % Shareholding Total assets 156.0 209.1 151.0 - 2013 90.94 99.69 99.76 97.27 84.00 91.48 99.69 98.79 95.76 65.8 72.2 - - 2.9 15,861.8 1,086.5 6,766.5 2012 100.00 100.00 152.6 305.7 235.1 141.0 415.4 2012 90.36 99.69 99.76 97.27 79.00 91.48 99.68 98.79 95.76 61.4 67.4 - 2.9 7,654.6 7,654.6 2,573.6 2,573.6 2013 130.4 130.4 320.2 320.2 144.5 144.5 141.8 141.8 1,639,071 61.4 61.4 67.2 67.2 ------929,973 450,643 245,889 150,000 415,020 708,966 101,868 602,657 610,174 574,458 Investments -cost 2013 method 2,143.2 7,474.2 2012 Separate 164.9 133.8 105.7 127.9 361.9 57.8 63.1 48.7 - - 1,639,071 923,936 450,643 245,889 150,000 415,020 708,966 602,655 610,153 574,458 2012 14,651.4 96,775 For theyearsended31December 3,289.5 2013 458.9 439.1 ų 68.0 - - - - nancial statements 1.5 0.7 0.7 14,041.6 3,572.1 2012 430.8 304.4 443.9 467.0 350,000 789,795 160,857 448,580 215,468 61.4 - - 2013 89,725 17,457 48,750 79,032 Dividend received 1.4 0.6 0.7 (Unit: ThousandBaht) during theyear - - (Unit: MillionBaht) Net income(loss) 2,520.8 2013 879.0 (1.4) 23.9 23.5 - - - - 1.5 0.5 0.5 517,382 160,857 124,606 430,936 2012 35,890 14,963 33,750 59,274 2,667.5 1,127.3 2012 - - (7.5) 20.8 21.3 13.3 57.5 - - 1.4 0.6 0.6 - Notes to consolidated financial statements ------7,600 7,453 4,036 63,296 2012 414,054 1,874,097 129 ------during the year (Unit: Thousand Baht) 7,842 4,633 Dividend received 12,350 2013 185,442 183,209 180,000 2,773,140 nancial statements ------999 ų 1,000 9,502 20,000 94,208 35,000 47,027 70,000 56,768 939,589 887,135 250,000 499,930 287,840 338,323 154,063 736,000 200,000 (20,000) 2012 9,236,292 2,922,872 1,733,240 24,937,354 24,917,354 Separate method - 1,217 1,217 1,000 9,502 20,000 90,000 47,027 70,000 94,208 38,750 56,768 150,000 600,000 939,765 887,131 499,930 600,000 214,900 273,152 736,000 200,000 287,840 338,323 154,063 2013 Investments - cost (115,095) 9,247,281 2,922,872 1,735,219 1,000,000 27,529,789 27,644,884 ------74.02 95.00 80.00 70.00 99.94 98.32 93.30 85.69 99.76 2012 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

- 98.43 93.45 85.73 99.76 86.89 26.33 74.02 95.00 80.00 70.00 99.94 2013 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 % Shareholding USD 40,000 USD 40,000 Baht 1 million Baht 1 million USD 10 million USD 10 million Baht 75 million Baht 10 million Baht 70 million Baht 42 million Baht 20 million Baht 90 million Baht 105 million Baht 736 million Baht 200 million Baht 300 million Baht 100 million Baht 201 million Baht 500 million Baht 600 million Baht 150 million Baht 600 million Paid-up Capital Baht 21.4 million Riel 9,200 million Baht 38.75 million Baht 1,108 million Baht 1,000 million Baht 193.8 million Riel 26,000 million service Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital Hospital company Dissolved Accounting Investment Investment Investment Central Lab Central Lab Technology and Technology Pharmaceuticals Life insurance broker Training business Training Health insurance information service Management service Nature of business (held by the Company at 26.33% Company’s name (Formerly known as “Krungdhon Hospital (formerly known as “Bangkok Health Insurance Co., Ltd.”) Public Co., Ltd.”) Bangkok Hospital Surat Co., Ltd. BDMS Inter Pte. Ltd. N Health Asia Pte. Ltd. Samitivej Chonburi Co., Ltd. Bangkok Hospital Phitsanulok Co., Ltd. investments in subsidiary companies Total Less: Allowance for impairment of investments investments in subsidiary companies - net Total Royal Bangkok Healthcare Co., Ltd. Greenline Synergy Co., Ltd. Co., Ltd. Bangkok Hospital Kao Yai Co., Ltd. BDMS Training Prasit Patana Public Co., Ltd. Paolo Medic Co., Ltd. Paolo Samutprakarn Co., Ltd. Siam Medical Co., Ltd. Thai Medical Center Public Co., Ltd. Bangkok Premier Life Insurance Broker Co., Ltd. Bangkok Hospital Chiangmai Co., Ltd. Bangkok Hospital Udon Co., Ltd. Bangkok Khon Kaen Hospital Co., Ltd. The Medicpharma Co., Ltd. Thonburi Medical Center Public Co., Ltd. National Healthcare Systems Co., Ltd. National Healthcare Systems (held by the Company at 74.02% and indirectly held by subsidiary at 24.66% (Thailand) Co., Ltd. Bio Molecular Laboratories Angkor Pisith Co., Ltd. Phnom Penh Medical Services Co., Ltd. Royal Rattanak Medical Services Co., Ltd B.D.M.S. International Medical Services Co., Ltd. BDMS Accounting Co., Ltd. (formerly known as Co., Ltd.”) “Asia International Healthcare New Petchburi Medical Services Co., Ltd. (liquidated in 2013) Bangkok Health Insurance Public Co., Ltd. and indirectly held by subsidiary at 29.02%) Nature of business Notes to consolidated financial statements 130 As aresult,thesubsidiaryhad issuedandpaidupsharecapitalofBaht38.75million. additional ordinaryshareswith aparvalueofBaht10each.Thesubsidiarycalledupshare capitalofBaht2.50pershare. the increaseofitsregisteredcapitalfromBaht35million to Baht50millionthroughtheincreaseincapitalof1,500,000 a subsidiarycompany,passedtheresolutionstoapprove changeofitsnametoBDMSAccountingCo.,Ltd.andapprove On14November 2013,theextraordinarymeetingofshareholdersNo.1/2013AsiaInternationalHealthcareCo.,Ltd., BDMS AccountingCo.,Ltd.(Formerlyknownas“AsiaInternational HealthcareCo.,Ltd.”) issued andpaidupsharecapitalofBaht1,000million. additional sharecapitalofBaht750million(100,000,000ordinary sharesatBaht7.50each).Asaresult,thesubsidiaryhad On13June 2013,ameetingoftheBoardDirectorsBangkokHospitalChiangmaiCo.,Ltd.approvedtocallup Bangkok HospitalChiangmaiCo.,Ltd. As aresult,thesubsidiarycompany’sshareholdinginthatcompanyincreasedto69.75percent. In2013,thesubsidiarycompanypurchasedadditionalinvestmenttotalingBaht20.6millioninSamitivejSrirachaCo.,Ltd. Samitivej PublicCo.,Ltd.andSriracha the Company'sshareholdinginthatcompanyincreasedto85.73percent. In2013,theCompanypurchasedadditionalinvestmenttotalingBaht0.2millioninSiamMedicalCo.,Ltd.As aresult, Siam MedicalCo.,Ltd. result, theCompany'sshareholdinginthatcompanyincreasedto93.45percent. In2013,theCompanypurchasedadditionalinvestmenttotalingBaht2.0millioninPaoloSamutprakarnCo., Ltd.Asa Paolo SamutprakarnCo.,Ltd. Hospital PublicCo.,Ltd.Asaresult,thesubsidiarycompany’sshareholdinginthatcompanyincreasedto74.07percent. In2013,thesubsidiarycompany purchasedadditionalinvestmenttotalingBaht186.4millioninSrirachaNakornGeneral Prasit PatanaPublicCo.,Ltd.andSrirachaNakornGeneralHospital result, theCompany'sshareholdinginthatcompanyincreasedto98.43percent. In2013,theCompanypurchasedadditionalinvestmenttotalingBaht11.0millioninPrasitPatanaPublicCo.,Ltd.Asa Prasit PatanaPublicCo.,Ltd. As aresult,theCompany'sshareholdinginthatcompanyincreasedto84.00percent. In2013,theCompanypurchasedadditionalinvestment totalingBaht5.1millioninBangkokPhrapradaengHospitalCo.,Ltd. Bangkok PhrapradaengHospitalCo.,Ltd. As aresult,theCompany'sshareholdinginthatcompanyincreasedto90.94percent. In2013,theCompanypurchasedadditionalinvestmenttotalingBaht6.0millioninBangkokRatchasimaHospital Co.,Ltd. Bangkok RatchasimaHospitalCo.,Ltd. 14.1 InvestmentsinsubsidiarycompanieswhichtheCompanyanditspreviouslyheld

Notes to consolidated financial statements 131 subsidiary On 28 August 2013, a meeting of the Board of Directors of the Company approved the establishment of 3 new in Singapore, in order to support the private companies which are held by N Health Asia Pte. Ltd., the Company’s subsidiary hospital operation. Details are as follows; subsidiary On 28 August 2013, a meeting of the Board of Directors of the Company approved the establishment of a new in Chonburi province. The new company company, namely Samitivej Chonburi Company Limited to operating a private hospital this company. The subsidiary company has has a registered capital of Baht 600 million. The Company holds 100 percent in Baht 150 million paid-up share capital. Republic and Kingdom of Cambodia Subsidiary companies in Republic of the Union of Myanmar, The Lao People’s Democratic On 27 August 2013, a meeting of the Board of Directors of Samitivej Public Co., Ltd. approved the establishment of a business. This company has Baht 40 million new subsidiary company, namely SV Holding Co., Ltd., to operate an investment of registered and paid-up capital. The subsidiary holds 100 percent in this company. Samitivej Chonburi Company Limited subsidiary company On 31 July 2013, the Board of Directors of the Company approved the establishment of a new 600 million of registered and paid-up capital. namely Bangkok Hospital Phitsanulok Company Limited. This company has Baht The Company holds 100 percent in this company. Samitivej Public Co., Ltd. and SV Holding Co., Ltd. the establishment of a private hospital 28 June 2013, a meeting of the Board of Directors of the Company approved On to Democratic Republic. The registered capital of the company is equivalent at Luang Prabang province in The Lao People’s is Inter Pte. Ltd., which is the Company’s subsidiary in Singapore. The company Baht 10 million and it is 100% held by BDMS during the process of incorporation. Limited Bangkok Hospital Phitsanulok Company of a new subsidiary 2013, a meeting of the Board of Directors of the Company approved the establishment On 28 June This Company Limited, to operate a hospital business in Surat Thani province. company, namely Bangkok Hospital Surat was capital and the Company holds 100 percent. The subsidiary company company has Baht 300 million of registered share capital. incorporated and has Baht 90 million paid-up Republic Hospital in The Lao People’s Democratic in Singapore in order to support the On 29 May 2013, the Company had established 2 new subsidiary companies and namely BDMS Inter Pte. Ltd. and N Health Asia Pte. Ltd. with USD 40,000 Company’s international business expansion, respectively. The Company holds 100 percent in these two companies. USD 40,000 of registered and paid-up capital, Bangkok Hospital Surat Company Limited 14.2 Investments in new subsidiary companies 14.2 Investments in Hospital Co., Ltd. Bangkok Khon Kaen the establishment of a new subsidiary of Directors of the Company approved 23 January 2013, a meeting of the Board On in Khon Kaen province. Limited, to operate a hospital business Khon Kaen Hospital Company company, namely Bangkok in this company. capital. The Company holds 100 percent 600 million of registered and paid-up This company has Baht in Singapore Subsidiary companies Notes to consolidated financial statements 132 since June2013 ofthissubsidiarycompanyincluded intheconsolidated of thetotalissuedshares.Therefore thiscompanychangeditsstatustobecomeasubsidiary company.Operatingresults totaling Baht160.13million.As aresult,theCompany'sshareholdinginTheMedicpharma Co., Ltd.increasedto86.23percent Medicpharma Co.,Ltd.On4June 2013,theCompanypurchasedadditional798,000shares atapriceofBaht200pershare On18April2013, the AnnualGeneralMeetingofCompany’sshareholders approvedanadditionalinvestmentinThe 14.3.2 TheMedicpharmaCo.,Ltd. aggregate percentageofshareholdingtheCompanyand the subsidiaryinthatcompanyhasincreasedto55.35percent. of ThonburiMedicalCenterPublicCo.,Ltd.hadnotfully exercisedtheirrightsonallnewissuedshares,therefore,the such newordinarysharestotalingof3,576,443forthe amountofBaht286.12million.Since,theexistingshareholders Baht 80each.TheCompanyandRoyalBangkokHealthcare Co., Ltd.,asubsidiarycompany,hadexercisedtheirrightsthrough new sharesareofferedtotheexistingshareholdersatratio of2existingsharesto1newshareattheofferingprice had theresolutionstoincreaseitsregisteredcapitalfor amountofBaht75millionbyissuingthenew7.5million.These On 31 October2013,theextraordinarymeetingofshareholdersNo.1/2013ThonburiMedicalCenterPublicCo.,Ltd. to 47.69percent. Center PublicCo.,Ltd.Asaresult,theCompanyanditssubsidiarycompany’stotalshareholdinginthatcompanyincreased Inthethirdquarterof2013,CompanypurchasedadditionalinvestmenttotalingBaht36.0millioninThonburiMedical consolidated subsidiary company.Operatingresultssincethesecondquarterof2013thiscompanyincludedin the made acontrolofsuchcompanythereforeThonburiMedicalCenterPublicCo.,Ltd.changeditsstatustobecome a Inthesecondquarterof2013,Companyappointedalldirectorsand managementtomanagesuchcompany.This company hold45.02percentinthatcompany. offer period(18March2013),tenderofferorssoldtheirsecuritiesof9,247shares.Asaresult,theCompanyanditssubsidiar of ThonburiMedicalCenterPublicCo.,Ltd.atapriceBaht55persharefromminorityshareholders.Aftertheendtender Inaddition,on7February2013,RoyalBangkokHealthcareCo.,Ltd.submittedatenderofferproposaltopurchaseshares hold 44.96percentofthetotalissuedsharesinThonburiMedicalCenterPublicCo.,Ltd. at apriceofBaht55persharestotaling205.79million.Asresult,theCompanyandsubsidiarycompanytotally shares insuchcompany,representing24.94percentofthetotalissuedcompanyfromexistingshareholders approved theacquisitionofsharesinThonburiMedicalCenterPublicCo.,Ltd.Thesubsidiarycompanyhasacquired3,741,612 On25January2013,themeetingofBoardDirectorsRoyalBangkokHealthcareCo.,Ltd.,asubsidiarycompany, 14.3.1 ThonburiMedicalCenterPublicCo.,Ltd. 14.3 Changesthestatusfrominvestmentsinassociatedcompaniestosubsidiary Currently, theyareintheprocessofregisteringtheirestablishment. heldbyNHealthAsiaPte.Ltd. 3. N HealthCambodiaCo.,Ltd.islocatedinKingdomofCambodia,hasUSD320,000registeredsharecapitaland100% and70%heldbyNHealthAsiaPte.Ltd. 2. NHealthLaosCo.,Ltd.islocatedinTheLaoPeople’sDemocraticRepublic,hasUSD200,000ofregisteredsharecapital and60%heldbyNHealthAsiaPte.Ltd. 1. NHealthMyanmarCo.,Ltd.islocatedinRepublicoftheUnionMyanmar,hasUSD500,000registeredsharecapital ų nancial statements. (Formerlyknownas“KrungdhonHospitalPublicCo.,Ltd.”) ų nancial statements. y

Notes to consolidated financial statements 133 208 (565) 2,224 63,533 97,324 89,468 13,018 24,357 36,240 (3,694) (3,142) (Unit : Thousand Baht) 208,319 682,261 874,270 125,443 241,343 366,786 303,253 (90,006) (28,516) (11,027) (96,947) (63,533) (108,785) (375,112) (373,715) ts ų nancial institution nancial institution deposits ų ų and The Medicpharma Co., Ltd. before acquisitions* Income tax payable Accrued expenses Other current liabilities Provision for long-term employee bene Cash and cash equivalents Short-term investments and other receivables Trade Inventories Other current assets Restricted Property, premises and equipment Other long-term investments Intangible assets Other non-current assets and other payables Trade Loan from Deferred tax liabilities Other non-current liabilities Fair value of net assets Ltd. Fair value of the Company’s existing shareholding in Thonburi Medical Center Public Co., Non-controlling interest Fair value of net assets acquired Add : Goodwill Cash paid for investments which changed the status from associated to subsidiary companies Less : Cash and cash equivalents of subsidiary companies Net cash paid for acquisitions of subsidiary companies * The Company realised gain from the remeasurement of its previously held shareholding of 20.01 percent in Thonburi * The Company realised gain from the remeasurement of its previously held to fair value in the consolidation statement Medical Center Public Co., Ltd. and 49.00 percent in The Medicpharma Co., Ltd. of investments”. of income by Baht 148.1 million, under the caption “gain on fair value adjustment in The Medicpharma investment totaling Baht 2.3 million 2013, the Company purchased additional In the third quarter of increased to 86.89 percent. the Company's shareholding in that company Co., Ltd. As a result, 14.3.3 The Medicpharma Co., Ltd. Medical Center Public Co., Ltd. and Acquisitions of Thonburi are as follows: and liabilities as at acquisition dates The fair values of assets Notes to consolidated financial statements 134 The fairvaluesofassetsandliabilitiesasatacquisitiondatesarefollows: On 8October2013,theCompanyreceivedtotalsubscriptionproceedsofBaht462.7million. share to22existingshareholdersofRatanavejHospitalCompanyLimited.TheofferingpriceisBaht127.22pershare. percent ofthetotalissuedandpaid-upsharecapitalCompanyfollowingthisoffering)withparvalueBaht 1 per Company heldon18April2013,bywayofaprivateplacementintheamount3,636,771shares(representing0.235 with theextensionofallocationperiodlaterapprovedby2013AnnualGeneralMeetingShareholders as previouslyapprovedbythe2012AnnualGeneralMeetingofShareholdersCompanyheldon20Apriland Afterthebusinesstransferasaforementioned,Companyoffereditsnewordinarysharesunderageneralmandate, as taketransferofcertaincompensationreservesspeci Baht 576millionandassumedRatanavejHospitalCompanyLimited’sliabilitiesofnotexceeding50aswell Ratanavej HospitalCompanyLimited.BangkokPhitsanulokLimitedpaidcashconsiderationofapproximately On1October2013,BangkokPhitsanulokCompanyLimitedhasexecutedtheacquisitionofentirebusiness of theentirebusinessRatanavejHospitalCompanyLimited. On31July2013,theBoardofDirectorsCompanyapprovedBangkokPhitsanulokLimited’sacquisition 14.4 AcquisitionofentirebusinessRatanavejHospitalCompanyLimited Net cashpaidforacquisitionsof subsidiarycompany Less :Cashandcashequivalentsofsubsidiarycompany Cash paidforinvestments The Companyissued3,636,771ordinaryshares Consideration paid Add :Goodwill Fair valueofnetassetsacquired Deferred taxliabilities Provision forlong-termemployeebene Other currentliabilities Accrued expenses Trade andotherpayables Property, premisesandequipment Other currentassets Inventories Trade andotherreceivables Cash andcashequivalents ų ts ų ed intheEntireBusinessTransfer Agreement. (462,670) (39,579) (83,674) (14,732) (15,957) (29,193) 113,383 576,053 481,950 545,283 (Unit :ThousandBaht) 30,896 39,579 73,804 94,103 9,569 (538) 715 Notes to consolidated financial statements 2 88 - - 200 200 245 - - - - 4,541 4,631 4,631 7,798 8,043 2012 2012 12,874 135 the years 2 the years - - 408 120 120 150 (Unit: Thousand Baht) (Unit: Thousand Baht) - - - - nancial statements nancial statements 3,900 4,052 4,052 2013 2013 ų ų 27,962 28,370 32,542 Dividend income during Dividend income during 531 350 - - - - 4,520 5,000 5,531 1,770 4,451 36,000 40,520 2012 2012 322,451 269,829 271,949 276,400 531 817 350 4,520 5,000 5,531 1,770 39,466 43,986 10,000 10,817 25,000 2013 2013 Investment (cost) Investment (cost) 282,378 269,829 271,949 232,861 (39,088) Consolidated and separate Consolidated and separate Consolidated and separate - 0.20 1.50 3.93 4.09 1.06 9.09 holding holding % share % share 44 100 100 125 1,995 1,250 41,372 capital capital Paid-up Paid-up (Million Baht) (Million Baht) Bank Airline Hospital Hospital X-ray lab business business Nature of Nature of Investment Travel business Travel nancial statements ų Company's name Company's name Investments in investment unit Investment in Government Saving Bank bonds Investment held by the subsidiary companies Available-for-sale investments Investments in investment unit Surplus on changes in value of available-for-sale investments Investments in listed securities Ltd. Thai Military Bank Public Co., Aikchol Hospital Public Co., Ltd. Bangkok Chain Hospital Public Co., Ltd. Surplus (loss) on changes in value of investments available-for-sale Investments in listed securities Investments in related companies Bangkok Airways Public Co., Ltd. X-Ray Computer Urupong Co., Ltd. Investments in related companies Investments in unrelated companies Thai Longstay Management Co., Ltd. Superior Biotech Holding Co., Ltd. Investments in unrelated companies other long-term investments Total in the separate Available-for-sale investments Company Investments held by the Available-for-sale 15. Other long-term investments 15. Other long-term Bangkok Airways Public Co., Ltd. Company purchased additional investment totaling Baht 3.5 million in Bangkok Airways Public Co., Ltd. In 2013, the As a result, the Company's shareholding in that company increased to 3.93 percent. Notes to consolidated financial statements 136 investments insubsidiarycompaniesbecausethe companyhasnopowertocontrolsuchcompanies. Asubsidiarycompanyhasinvestmentsincompaniesthathaveceasedtheiroperationsbutnotclassi Asubsidiarycompanyhad33.33percentageofshareholdingin PrasitthiratCompanyLimitedbuthasnotclassi Prasitthirat CompanyLimited Investments inordinaryshares(ceasedoperations)-Subsidiary companies operating policydecisionsofthatcompany. investment inassociatedcompanybecausethesubsidiary companyhasnopowertoparticipateinthe Total otherlong-terminvestments-netinthe Less :Allowanceforimpairmentofinvestment Phuket HospitalPublicCo.,Ltd. Unrelated company Phyathai HerbsCo.,Ltd. Phuket ParadiseCo.,Ltd. Klass -VCo.,Ltd. Phyathai 4Hospital(PetchaburiRoad)Co.,Ltd. Subsidiary companies Investments inordinaryshares(ceasedoperations) Investments inunrelatedcompanies General HospitalProductsPublicCo.,Ltd. Kendall GammatronLimited Asia LaboratoriesCenterLimited Phuket InternationalHospitalCo.,Ltd. Prasitthirat Co.,Ltd. Thai HerbalProductsCo.,Ltd. Investments inunrelatedcompanies I nvestment inordinaryshares consolidated (ceased operations)-net Company's name ų nancial statements Hospital In processofliquidation Adjudged bankrupt Adjudged bankrupt Adjudged bankrupt of medicalsupplies Manufacturer anddistributor Trading ofmedicalsupplies Central lab Hospital known as“Rangsituniversity” Educational institution Sales ofherbalproducts Nature of business (Million Baht) Paid-up capital 358 196 409 250 328 120 195 150 60 80 5 % share holding 19.08 63.64 72.26 89.66 89.79 33.33 0.44 5.10 8.00 6.15 0.60 Consolidated andseparate 107,192 500,696 146,612 Investment (cost) 2013 (7,000) 29,552 35,889 42,889 42,889 1,178 8,000 - - - - 290 400

495,775 137,434 107,192 2012 (7,000) 35,889 42,889 42,889 29,552 290 ------400

Dividend incomeduring ų 37,340 2013 nancial statements 4,798 2,700 2,000 (Unit: ThousandBaht) ------40 58 the years ų ų nancial and ed themas ų 16,564 ed itas 2012 3,690 3,600 ------50 40 Notes to consolidated financial statements

16. Investment properties (Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements Land Building Total Land Building Total 31 December 2011 35,445 154,781 190,226 271,035 154,781 425,816 Purchase - 12,008 12,008 - 12,008 12,008 Transfer from property, premises and equipment - 2,684 2,684 - 2,684 2,684 Gain on revalue of assets - 17,877 17,877 - 17,877 17,877 31 December 2012 35,445 187,350 222,795 271,035 187,350 458,385 Purchase - 6,084 6,084 - 6,084 6,084 Transfer from property, premises and equipment - 26,991 26,991 - 26,991 26,991 Gain on revalue of assets - 5,650 5,650 18,069 5,650 23,719 Disposal of assets - (821) (821) - (821) (821) 31 December 2013 35,445 225,254 260,699 289,104 225,254 514,358

The investment properties of the Company and its subsidiaries of the Company and its subsidiaries consist of land and building for rent. The fair value of land has been determined based on valuations performed by an accredited independent valuer, using the Market approach. The fair value of building for rent has been determined based on Income approach.

17. Property, premises and equipment (Unit: Thousand Baht) Consolidate ųnancial statements

Assets which are stated at cost or Assets which are stated at cost reappraised value

Medical Structure Building under Building and tools, equipment, construction and furniture, ųxture medical tools Land and land building machine and and and equipment improvement improvement equipment ofųce equipment Vehiclesunder installation Total

Cost/reappraised value 31 December 2011 8,545,410 24,190,680 11,831,078 5,807,481 619,274 1,496,430 52,490,353 Increase from revaluation 512,526 - - - - - 512,526 Purchases 1,092,854 793,454 1,810,257 635,547 90,440 1,693,874 6,116,426 Transfer in / (Transfer out) - 1,223,027 64,852 216,474 2,431 (1,512,759) (5,975) Disposals / Written-off - (32,292) (367,228) (148,551) (19,165) (1,517) (568,753) Translation adjustment - (12,098) (1,955) (2,911) (208) (17,384) (34,556) 31 December 2012 10,150,790 26,162,771 13,337,004 6,508,040 692,772 1,658,644 58,510,021 Increase from acquisition 541,401 794,023 21,965 314,217 12,635 12,835 1,697,076 Purchases 1,144,612 616,016 1,741,583 972,525 95,337 3,095,488 7,665,561 Transfer in / (Transfer out) (23,711) 1,252,657 68,294 275,402 9,660 (1,620,550) (38,248) Disposals / Written-off - (170,037) (169,289) (226,100) (40,001) (6,798) (612,225) 137 Notes to consolidated financial statements 138 2013(Baht2,445millionincludedincostofhospitaloperations,salesand services,andthebalanceinadministrativeexp 2012(Baht2,294millionincludedincostofhospitaloperations,salesand services,andthebalanceinadministrativeexp Depreciation chargedincludedinincomestatementfortheyear 31 December2013 31 December2012 Net bookvalue 31 December2013 impairmentloss 31 December2012 impairmentloss 31 December2011 Impairment of 31 December2013 Translation adjustment Disposals /Written-off Transfer in/(Transfer out) Depreciation fortheyear Increase fromacquisition 31 December2012 Translation adjustment Disposals /Written-off Transfer in/(Transfer out) Depreciation fortheyear 31 December2011 Accumulated depreciation 31 December2013 Translation adjustment ų xed assets reappraised value Assets whichare stated atcostor Land andland improvement 11,813,092 11,781,769 10,120,624 24,839 26,454 25,297 2,955 1,157 4,869 4,869 1,914 ------458 - Building and improveme Consolidate 10,702,252 28,680,348 11,811,303 13,139,303 15,522,155 14,351,468 building 1,139,359 1,228,950 (116,867) (27,009) 210,146 (2,045) (1,254) 24,918 18,890 18,890 5,855 - - - (84) machine and ų 15,005,460 equipment nancial statements 1,229,146 8,283,151 5,653,364 5,053,853 9,352,096 1,149,986 7,460,626 (165,511) (325,328) Medical tools, (2,133) 5,308 5,903 ------2 of furniture, ų equipment, eeupetV ce equipment 4,730,135 4,409,420 7,850,616 5,335,612 2,515,004 1,777,905 Structure Assets whicharestatedatcost (206,501) (139,351) 556,568 249,244 462,811 and (2,845) 6,532 6,455 (289) - - - - - ų 100 xture (18,287) (39,107) 228,334 189,452 503,320 460,190 770,872 542,538 hce Total ehicles 67,784 10,141 61,574 (157) ------469 400 - under installation construction and and equipment Building under enses) enses) medical tools 3,174,355 1,658,644 3,174,355 34,736 ------(Unit: ThousandBaht) 23,057,327 67,294,743 25,353,206 38,874,981 33,151,946 28,396,003 2,814,188 3,083,605 3,083,605 2,814,188 (509,975) (527,986) 469,531 (1,154) (7,180) 72,558 23,759 18,890 18,018 4,869 1,914 2,955 (371) Notes to consolidated financial statements (26) nancial (1,153) (3,838) ų 643,355 626,186 643,355 626,186 352,237 (83,053) (30,052) (100,357) (120,509) (132,244) 1,297,895 5,125,443 5,667,288 6,263,396 6,448,077 6,934,567 1,783,929 12,115,365 13,197,963 10,103,546 139 (Unit: Thousand Baht) es) es) (8) ------127,030 313,487 365,735 358,356 412,103 365,735 412,103 (74,782) (311,980) medical tools Building under and equipment construction and under installation - - - - - 48,945 59,579 14,498 10,391 25,133 28,859 (8,034) (3,614) (8,035) (3,681) ehicles Total 130,560 124,096 190,139 117,319 173,041 147,863 56 xture - - ų 93,426 67,070 75,706 62,982 (9,286) (8,865) and 200,825 163,613 425,621 599,613 (25,452) (25,639) 1,224,092 1,448,757 1,649,713 1,908,322 1,173,838 1,308,709 Assets which are stated at cost Assets which are stated at Structure ce equipment V equipment, ų furniture, of 2 218 - - 4,700 (6,540) (6,541) 367,818 465,521 320,413 334,441 tools, (83,005) (67,398) Medical 1,187,457 1,235,077 3,389,456 3,002,240 2,201,999 2,515,874 3,750,951 1,934,956 nancial statements equipment ų machine and (84) - 3,262 91,199 (8,184) (6,613) (1,153) (3,893) (6,613) 236,264 217,661 222,817 197,828 4,587,759 4,674,036 5,121,348 1,899,330 2,117,101 2,308,232 2,556,935 2,813,116 building Consolidate Building and improvement 21 21 ------789,897 352,237 721,250 109,499 (56,022) (101,761) 1,863,384 1,863,384 1,815,079 1,815,100 improvement Land and land stated at cost or Assets which are reappraised value In 2012, the Company and six subsidiary companies have recorded appraisal result which engaged an independent In Cost/reappraised value 31 December 2011 Increase from revaluation Purchases out) in / (Transfer Transfer Disposals/Written-off 31 December 2012 Purchases out) in / (Transfer Transfer Disposals/Written-off 31 December 2013 Accumulated depreciation 31 December 2011 Depreciation for the year out) in / (Transfer Transfer Disposals / Written-off 31 December 2012 Depreciation for the year out) in / (Transfer Transfer Disposals / Written-off 31 December 2013 Net book value 31 December 2012 31 December 2013 Depreciation charged included in income statement for the year in administrative expens 2012 (Baht 573 million included in cost of hospital operations, sales and services, and the balance in administrative expens 2013 (Baht 544 million included in cost of hospital operations, sales and services, and the balance statements amount of Baht 2,631 million which increased from the book values of Baht 513 million and decreased from statements amount of Baht 2,631 million which increased from the book values appraiser to appraise all of its land using the market approach. The fair values of the revalued land in consolidated appraiser to appraise all of its land using the market approach. The fair values of

Notes to consolidated financial statements 140 and Baht2,962.4millionintheseparate approximately Baht13,592.7millionand3,579.5intheseparate and vehicleswhichhavebeenfullydepreciatedbutarestillinuse.Theoriginalcostofthoseassetsamounted to Asat31December2013,theCompanyanditssubsidiarieshavecertainbuildingimprovement,medicaltools,equipment statements (2012:Baht244.0millionand21.1intheseparate lease agreementswithnetbookvaluesamountingtoBaht176.7millionand29.3intheseparate 18. Landandbuildingsnotusedinoperations The revaluationsurpluscanneitherbeoffsetagainstde "Loss onrevaluationofland"inthestatementsincome. amount as"Gainonrevaluationofland"inthestatementscomprehensiveincomeandrecordeddecrease million whichincreasedfromthebookvaluesofBaht352million).TheCompanyanditssubsidiariesrecordedincrease the bookvaluesofBaht2million(Separate recorded thelandatcost,theirnetbookvalueas31December2013and2012wouldhavebeenfollows: Total Allowance forimpairment Balance carryforward Transfer to property plantandequipment Reversal revaluationsurplus Transfer frompropertyplantandequipment Balance broughtforward Revaluation surplus Balance carryforward Transfer topropertyplantandequipment Disposal Transfer frompropertyplantandequipment Balance broughtforward Land andbuildingsathistoricalcost As of31December2012 As of31December2013 Net bookvalue(atcost): Land andbuildingsnotusedinoperationsasat31December20132012consistedof: As at31December2013,theCompanyanditssubsidiarieshavemedicaltools,equipmentvehiclesunder ų nancial statements). ų nancial statements:thefairvaluesofrevaluedlandamountBaht1,141 ų cit norusedfordividendpayment.IftheCompanyanditssubsidiaries Consolidated Consolidated (38,462) (10,552) (38,123) 368,174 265,668 347,752 602,008 254,975 2013 18,040 37,982 (719) - 6,806,326 8,484,067 ų ų ų nancial statements nancial statements). nancial statements ų nancial statement(2012:Baht11,631.4million 633,123 265,668 265,668 368,174 368,174 022012 2012 (719) - - - - - Separate Separate (48,675) (38,462) 601,681 254,975 265,668 347,425 367,847 37,982 18,040 2013 (719) - - ų ų 1,179,380 1,286,375 nancial statements nancial statements (Unit: ThousandBaht) (Unit: ThousandBaht) 632,796 265,668 265,668 367,847 367,847 ų nancial ų (719) nance ------Notes to consolidated financial statements 141 40 (29) ------(Unit: Thousand Baht) 84,962 14,252 99,214 30,607 283,485 137,848 157,950 125,535 421,344 129,821 184,271 291,523 nancial statements ų Separate 18 82 144 (29) (70) (702) (352) 6,659 2,135 8,883 5,869 nancial statements (3,980) (4,223) ų 514,428 114,249 624,668 128,880 759,955 568,720 654,920 996,567 198,979 207,293 1,414,875 1,193,388 Consolidated

In 2012, the Company has recorded appraisal result which engaged an independent appraiser to appraise all of its land engaged an independent appraiser to appraise has recorded appraisal result which In 2012, the Company Cost As at 31 December 2011 Purchases in Transfer Disposals/written-off adjustment Translation As at 31 December 2012 Increase from acquisition Purchases in Transfer Disposals/written-off adjustment Translation As at 31 December 2013 Accumulated amortisation As at 31 December 2011 Amortisation for the year Disposals/written-off adjustment Translation As at 31 December 2012 Increase from acquisition Amortisation for the year in Transfer Disposals/written-off adjustment Translation As at 31 December 2013 Net book value As at 31 December 2012 As at 31 December 2013 19. Intangible assets

software are as follows: Intangible assets, as at 31 December 2013 and 2012, which are computer using the market approach. The fair values of the revalued land amount of Baht 602 million which increased from the book land amount of Baht 602 million which The fair values of the revalued using the market approach. comprehensive income. of land" in the statements of and was recorded as "Gain on revaluation values of Baht 122 million to cost of land not used in operations amounted interest on loans recorded as a portion of The cumulative capitalised 29 million (2012: Baht 29 million). approximately Baht Notes to consolidated financial statements 142 22. Tradeandotherpayables US currencyfacilities. (2012: Baht850million).ThefacilitiescarryinterestrateatMORforcurrencyandLIBORplus and USD1million(2012:Baht1,205million)inseparate Asat31December2013,theCompanyanditssubsidiarieshavebankoverdraftfacilitieswithbanksofBaht1,219million 21. Bankoverdraftsandshort-termloansfromfinancialinstitutions A reconciliationofthenetbookvalueleaseholdrightsforyears2013and2012ispresentedbelow. 20. Leaseholdrights Net bookvalueatendofyear Translation adjustment Less: amortisation Purchases Net bookvalueatbeginningofyear Amortisation fortheyear Book value–net Less: Accumulatedamortisation Cost Total trade and otherpayables Accounts payable-construction andretention Other payables-unrelatedparties Other payables-relatedparties Trade payables-unrelatedparties Trade payables-relatedparties

Consolidated Consolidated Consolidated 1,182,283 (214,332) 4,020,697 1,076,616 2,344,505 (31,762) 967,951 967,951 426,711 552,715 550,299 2013 2013 2013 31,762 20,287 11,200 38,077 ų ų ų nancial statements nancial statements nancial statements 3,614,106 2,149,653 (181,052) (22,137) 552,715 557,137 ų 552,715 733,767 390,536 987,864 022012 2012 2012 2012 022012 2012 (9,566) 27,281 nancial statementsofBaht850million 22,137 10,670 75,383 Separate Separate Separate (14,729) 986,903 337,323 339,963 122,437 396,459 311,871 (48,422) 396,459 444,881 95,157 92,023 99,317 14,729 2013 2013 2013 - ų ų ų nancial statements nancial statements nancial statements (Unit: ThousandBaht) (Unit: ThousandBaht) (Unit: ThousandBaht) ų xed ratefor 961,204 358,602 315,400 126,209 106,061 (33,693) 133,010 (6,744) 71,748 89,245 99,317 99,317 - - 6,744 Notes to consolidated financial statements xed xed ų ų nancial ų 143 xed rates per ų - - (Unit: Thousand Baht) nancial institution nancial institution (820,199) (928,639) 9,075,180 8,254,981 7,326,342 ų nancial statements ų ų nancial institution granting ų Separate xed rate per annum as stipulated in the nancial institution amounting to Baht 2,500 ų ų 5,703 90,006 nancial statements ų (999,876) (980,091) 8,563,524 7,563,648 9,447,906 xed rate per annum as stipulated in the agreement xed rate per annum as stipulated in the ų Consolidated nancial institutions - net of ų nancial institutions ų Long-term loans from Balance as at 1 January 2013 Balance as at 1 January Increase from acquisitions Less: Repayment during period adjustment Translation Balance as at 31 December 2013 Less: Current portion of long-term loans from portion current of six-month Fixed Deposit Rate plus granting credit facilities of Baht 586 million carrying interest at the rate rates per annum as stipulated in the agreement. The interest and principal are repayable on a monthly basis a condition as stipulated in the agreement. As at 31 December 2013, this loan has outstanding balance according to (2012: Baht 558.5 million). of Baht 525.7 million d) In June 2012, the Company entered into a 7 years and 6 months loan agreement with a on a monthly basis and the principal is rates per annum as stipulated in the agreement. The interest is repayable in the agreement. As at 31 December 2013, repayable on a quarterly basis according to a condition as stipulated outstanding balance of Baht 2,269.0 million (2012: Baht 2,569.0 million). this loan has c) and 6 months loan agreement with a In January 2012, the Company entered into a 8 years Baht 1,766 million carrying interest at the rate of six-month Fixed Deposit Rate plus credit facilities of in the agreement. The interest is repayable on a monthly basis and principal is repayable on a annum as stipulated quarterly basis according to a condition as stipulated in the agreement. As at 31 December 2013, this loan has of Baht 1,527.8 million (2012: Baht 1,671.4 million). outstanding balance e) In July 2012, the Company entered into a 5-year loan agreement with a The loan has a period of 5 years and carries interest at the million. on a semi-annually basis and principal is repayable at the end of loan period. agreement. The interest is repayable 2013, this loan has outstanding balance of Baht 2,500 million (2012: Baht 2,500 million). As at 31 December loan as at 31 December 2013 was Baht 1,432.5 institution as discussed in Note 37.2 the outstanding balance of this 1,776.3 million). million (2012: Baht b) entered into a 7 years and 6 months loan agreement with a In November 2011, the Company million carrying interest at the rate of six-month Fixed Deposit Rate plus granting credit facilities of Baht 3,000 The Company a) the credit facilities of Baht 3,438 Company entered into a 10-year loan agreement with a bank granting In 2008, the plus million. The loan carries interest at the Fixed Deposit Rate This loan agreement includes a condition that the Company with interest and principal payable on a monthly basis. certain covenants which the Company and its subsidiaries and its subsidiaries may not mortgage any assets and also entered into an interest rate swap contract for the above loan with a must comply. The Company also 23. Long-term loans from financial institutions 23. Long-term loans Notes to consolidated financial statements 144 24. Liabilitiesunderfinanceleaseagreements In2007and2008,AngkorPisithCo.,Ltd.,asubsidiarycompany,enteredinto7years10monthsloan a) must complysuchas TheCompany’sanditssubsidiaries' loanagreementscontaincertaincovenantswhichtheCompanyanditssubsidiaries 31December2013,thesubsidiarycompanyhasnooutstandingbalance. institution. ThecreditfacilitieswereBaht100million.loanbearsinterestattherateofsix-monthBIBORplus In2013,TheMedicpharmaCo.,Ltd.,asubsidiarycompanyenteredinto2-yearloanagreement witha d) outstandingbalanceofBaht223.8million(2012:269.4million). consequentlyamendedtobearsinterestatasix-monthFixedDepositRateplus speci enteredintoa9-yearloanagreementwithanother In2009,SrirachaNakorn GeneralHospitalPublicCompanyLimited,asubsidiarycompanyofcompany, c) Asat31December2013, thisloanhasoutstandingbalanceofBaht5.6million(2012:8.9million). Theinterest andprincipalarerepayableonamonthlybasisaccordingtoconditionasstipulatedintheagreement. ) In2008,BangkokRatchasimaHospitalCo.,Ltd.,asubsidiarycompany,enteredinto7-yearloanagreementwith a b) (2012:USD3.1million orequivalenttoBaht94.4million). Asat31December2013,thisloanhasoutstandingbalanceofUSD2.4millionorequivalenttoBaht79.1million. onaquarterlybasisaccordingtoconditionasstipulated intheagreement.ThisloanisguaranteedbyCompany. rateofLIBORplusa agreementwithaforeign Present valueoffutureminimum Deferred interestexpenses Future minimum Liabilities under Less: Currentportionofliabilitiesunder Total Less: Deferredinterestexpenses Liabilities under As at31December2013and2012,liabillitiesunder The subsidiaries agreements asfollows: The Companyanditssubsidiarieshavefutureminimumlease paymentswhichrequiredunderthe ų xed rateperannum,withthespeci ų nancial institution.ThecreditfacilitieswereBaht20million.loanbearsinterestat ų ed repaymentsofprincipalandinterestasstipulatedintheagreement.Asat31December2013,thisloanhas ų ų nance leaseagreements-netofcurrentportion ų nance leaseagreements nance leasepayments ų nancial ratios. ų xed rateperannum.Theinterestisrepayableonamonthlybasisandtheprincipal ų nancial institutiongrantingcreditfacilitiesofUSD4million.Theloanbearsinterestatthe ų nance leasepayments ų nance leaseagreements ų ed repaymentsofprincipalandinterestasstipulatedintheagreement.Asat ų nance leaseagreementsareasfollows: ų nancial institutiontoobtainloanofBaht410million.This Consolidated Less than1year (84,092) 159,424 168,623 (9,199) 75,332 2013 (5,284) 84,092 89,376 Consolidated ų nancial statements As at31December2013 (92,713) (12,538) 178,787 191,325 022012 2012 86,074 1-5 years ų nancial statements (3,915) 75,332 79,247 ų xed rateperannum,withthe Separate (11,109) (1,798) 18,368 29,477 31,275 2013 ų xed rateperannum. ų nancial statements ų nance lease (Unit: ThousandBaht) (Unit: ThousandBaht) 159,424 168,623 Total (9,199) (6,150) (1,348) 11,436 17,586 18,934 ų nancial Notes to consolidated financial statements 145 Total Total 18,934 17,586 31,275 29,477 Total (1,348) (1,798) 191,325 178,787 (12,538) (Unit: Thousand Baht) (Unit: Thousand Baht) (Unit: Thousand Baht) (654) (890) 89,674 86,074 (3,600) 12,090 11,436 19,258 18,368 nancial statements ų 1-5 years 1-5 years 1-5 years nancial statements nancial statements ų ų As at 31 December 2012 As at 31 December 2013 As at 31 December 2012 As at 31 December Separate Separate Consolidated (694) (908) 6,844 6,150 92,713 (8,938) 12,017 11,109 101,651 Less than 1 year Less than 1 year Less than 1 year nance lease agreements with various leasing companies to rent medical tools, ų nance lease payments nance lease payments nance lease payments ų ų ų nance lease payments nance lease payments nance lease payments ų ų ų Future minimum Deferred interest expenses Present value of future minimum Future minimum Deferred interest expenses Present value of future minimum Future minimum Deferred interest expenses Present value of future minimum The Company and its subsidiaries have equipment, and vehicles for use in their operations. Installments are due on a monthly basis over 32-60 months and at the equipment, and vehicles for use in their operations. Installments are due on a end of the agreements. Notes to consolidated financial statements 146 and the amount ofBaht3,000millionandthe5-yeardebenturesfor2,000in of 4.84%perannumwithinterestpayableeverysix-month.TheCompanyhadredeemedthe3-yeardebenturesfor the at thecouponrateof4.11%perannumand5-yeardebenturesforamountBaht2,000million rate 5,000 million.Thesedebenturesaredividedintotwotranches:the3-yearforamountofBaht3,000million On6March2008,theCompanyhadissuedunsecured,namedregisteredandunsubordinateddebentureswithouta debentureholders’ representativeforthetotalnumberof5,000,000units,atpriceBaht1,000perunit,totaling Baht Movementsofdebenturesnetfromdebentureexpensesandamortisationduringtheyearsended 31 December2013and2012aresummarisedbelow. 25. Debentures payable everysix-month. totaling Baht4,000million.This debentureis10-yeardebenturesatthecouponrate of 4.63%perannumwithinterest On14March2013,theCompanyhadissuedunsecured, nameregisteredandunsubordinateddebentureswithout a debentureholders’ representative debentureforthetotalnumberof4,000,000units, at thepriceofBaht1,000perunit, payable everysix-month. totaling Baht600million.Thesedebenturesare10-year atthecouponrateof4.5%perannumwithinterest InAugust2012,theCompanyhadissuedunsecured,nameregistered and unsubordinateddebentureswithouta debentureholders’ representativedebentureforthetotal numberof600,000units,atthepriceBaht1,000perunit, payable everysix-month. totaling Baht1,000million.Thesedebenturesare3-year atthecouponrateof3.78%perannumwithinterest On29March2011,theCompanyhadissuedunsecured,nameregisteredandunsubordinated debentureswithouta debentureholders’ representativedebentureforthetotal numberof1,000,000units,atthepriceBaht1,000perunit, payable everysix-month. totaling Baht2,500million.Thesedebenturesare4-year atthecouponrateof3.99%perannumwithinterest On3March2011,theCompanyhadissuedunsecured,nameregisteredandunsubordinateddebentureswithouta debentureholders’ representativedebentureforthetotalnumberof2,500,000units,atpriceBaht1,000per unit, totaling Baht30million. every six-month.Upto31December2013,theCompanyhadrepurchasedsuchdebenturesforamountof30,000 units, the 7-yeardebenturesforamountofBaht1,000millionatcouponrate5.35%perannumwithinterestpayable into twotranches:the5-yeardebenturesforamountofBaht2,000millionatcouponrate4.80%perannum and On4June2009,theCompanyhadissuedunsecured,nameregisteredandunsubordinateddebenturesfortotal number of3,000,000units,atthepriceBaht1,000perunit,totaling3,000million.Thesedebenturesaredivided Debentures -netofcurrentportion Less: Currentportionofdebentures Balance asat31December2013 Amortisation ofdebentureexpenses Debenture expenses Redemption ofdebenturesduringtheperiod Debentures issuedduringtheperiod Balance asat1January2013 ų rst quarter2013,respectively. Consolidated (2,000,000) (2,969,455) 11,089,780 14,059,235 7,000,000 9,063,854 ų 2013 (8,378) nancial statements 3,759 Separate (1,999,885) ų ų 8,461,263 7,063,969 9,063,854 nancial statements rst quarterof2011 2012 600,000 (Unit: ThousandBaht) 3,361 (770) - Notes to consolidated financial statements - nancial 6,244 8,360 4.7 6.0 ų 6,244 16,241 46,747 16,241 22,485 14,125 (5,224) 148,516 212,524 147 nancial ratios, ų (Unit: Thousand Baht) (Unit: Thousand Baht) Separate Separate Separate - - 8,113 4.1 6.0 8,113 20,893 (3,156) 20132013 2013 2013 20,893 29,006 10,098 18,908 nancial statements 212,524 238,374 nancial statements nancial statements ų ų ų - 93,638 39,174 2012 2012 93,638 39,174 78,287 54,525 2012 2012 2012 2012 862,972 131,630 (18,758) 132,812 3.7 - 5.0 3.0 - 7.5 1,108,656 nancial statements Baht 46.7 million). ų (% per annum) (% per annum) Consolidated Consolidated Consolidated 25,759 43,174 43,174 91,256 79,200 127,282 (44,744) (58,083) nancial statements nancial statements nancial statements 20132013 2013 2013 127,174 170,456 ų ų ų 1,108,656 1,202,044 3.7 - 4.1 3.0 - 7.5 t or loss were as follows: ų t or loss ų ts, which is compensations on employees’ retirement, was as follows: ts, which is compensations on employees’ ų t or loss ų t expenses included in the pro ų t obligation at beginning of year t obligation at end of year ų ų ts paid during the year ų ned bene ned bene ų ų Principal actuarial assumptions at the valuation date were as follows: The cumulative amount of actuarial losses recognised in other comprehensive income and taken as part of retained The cumulative amount of actuarial losses recognised in other comprehensive Long-term employee bene Current service cost Interest cost recognised in pro expense Total Cost of hospital operations, sales and services Administrative expenses Line items under which such expenses are included in pro Increase from acquisition Current service cost Interest cost Bene Actuarial loss (gain) De De Discount rate Future salary increase rate (depending on age of employee)

earnings of the Company and is subsidiaries as at 31 December 2013 amounted to Baht 76.7 million and the separate earnings of the Company and is subsidiaries as at 31 December 2013 amounted to statements Baht 46.7 million (2012: Baht 134.8 million and the separate payment of dividend, assets dispositions, etc. payment of dividend, 26. Provision for long-term employee benefits long-term 26. Provision for for long-term employee bene Provision debentures without a name registered and unsubordinated 2013, the Company had issued unsecured, On 10 May of Baht 1,000 per unit, number of 3,000,000 units, at the price representative debenture for the total debentureholders’ for the number of into two tranches: the 7-year debentures million. These debentures are divided totaling Baht 3,000 of 1,000,000 units at the 10-year debentures for the number coupon rate of 4.19% per annum and 2,000,000 units at the every six-month. per annum with interest payable the coupon rate of 4.39% must comply with such as certain covenants which the Company Debenture agreement contains Notes to consolidated financial statements 148 Amounts ofde reserve reaches10percentof theregisteredcapital.Thestatutoryreserveisnotavailable fordividenddistribution. statutory reserveatleast5percent ofitsnetpro PursuanttoSection116ofthePublicLimitedCompanies ActB.E.2535,theCompanyisrequiredtosetasidea 29. Statutoryreserve The CompanypaidsuchdividendsinMay2013. The CompanypaidsuchdividendsinMay2012. 28.Dividends 27. Sharecapital of Baht1pershare.So,theCompanyhasissuedandfullypaid-up1,549,095,654shares. AsmentionedinNote14.4,duringtheyear2013,Companyhadprivateplacementof3,636,771shareswithparvalue ordinary shareswithparvalueofBaht1pershare.TheCompanyhasalreadyregisteredthecapitalincreaseinMay2012. shares withaparvalueofBaht1pershare.Thenewregisteredcapitalwillbe1,700,004,771,consisting1,700,004,77 Company’s registeredcapitalbyBaht154,545,888underageneralmandate,throughtheissueofnewordinary registered capitalbyBaht7,932,525,from1,553,391,408to1,545,458,883,andapprovedtheincreaseof the On20April2012,theAnnualGeneralMeetingofCompany’sshareholdersapprovedreduction Total dividendsduring2012 Final dividendsfor2011 Total dividendsduring2013 Final dividendsfor2012 Year 2010 Year 2011 Year 2012 Year 2013 iied prvdb Dividendpershare Dividendpershare Approvedby Approvedby Dividends Dividends ų ned bene

ų nancial statements ų t obligationforthecurrentandpreviousthreeperiodsareasfollows: Consolidated 1,108,656 1,202,044 471,633 862,972 De ų Annual GeneralMeetingoftheshareholders Annual GeneralMeetingoftheshareholders ned bene ų ų nancial statements t obligation on 18April2013 on 20April2012 ų t afterdeductingaccumulated de Separate 132,629 148,516 212,524 238,374 Experience adjustmentsarisingontheplanliabilities ų nancial statements Consolidated 9,330 Total dividends Total dividends 68,661 MlinBh)(Baht) (Million Baht) (Baht) (Million Baht) - - 1,700 1,700 2,782 2,782 ų cit broughtforward(ifany),until the ų nancial statements Separate 31,203 (Unit: ThousandBaht) 1.80 1.80 1.10 1.10 - - - 1 Notes to consolidated financial statements 69.2 7,821 664.4 394.7 9,349 (4,750) 2,199.4 2,043.4 1,123.6 165,746 162,675 273,529 188,046 (94,832) 149 (Unit: Million Baht) (Unit: Thousand Baht) (Unit: Thousand Baht) nancial statements nancial statements nancial statements ų ų ų - 905 85.1 8,708 9,735 671.5 358.0 2013 2013 2013 18,443 2,566.5 2,502.5 1,621.9 149,148 119,658 (30,395) Separate Separate Separate For the years ended 31 December For the years ended 31 December 866.4 444.4 90,139 28,937 (7,354) 2012 2012 2012 2012 2012 2012 273,108 175,551 9,274.8 6,146.7 2,950.6 (126,494) 10,192.1 1,528,060 1,610,845 nancial statements nancial statements nancial statements ų ų ų 866.7 510.7 8,654 7,625 3,928 2,905 4,313 2013 2013 2013 7,168.5 3,244.2 (12,351) 11,712.6 11,109.7 1,384,760 1,391,978 For the years ended 31 December For the years ended 31 December Consolidated Consolidated Consolidated cant expenses by nature for the years ended 31 December 2013 and 2012 are as follows: for the years ended 31 December cant expenses by nature ų Deferred tax relating to actuarial loss (gain) Deferred tax relating to loss (gain) of available-for-sale investments on change in value Deferred tax relating to loss (gain) and buildings on revaluation of land Current income tax: Current income tax charge of previous year Adjustment in respect of current income tax Deferred tax: Relating to reversal of temporary differences Income tax reported in the income statements Employee expenses Doctor fee Cost of drugs and supplies Depreciation and amortisation expenses Advertising and public relation expenses Rental expenses component of other comprehensive income (loss) are as follows: The amounts of income tax relating to each 31. Income tax tax of the Company and its subsidiary are made up as follows: Income 30. Expenses by nature Signi Reconciliation between income tax and the product of accounting proųt multiplied by the applicable tax rates is presented below. (Unit: Thousand Baht) Consolidatedųnancial statements Separate ųnancial statements For the years ended 31 December For the years ended 31 December Notes to consolidated financial statements 2013 20122013 2012 Accounting proųt before tax 7,911,956 9,772,940 3,901,287 2,836,277

Applicable tax rate 20% 23% 20% 23% Accounting proųt before tax multiplied by applicable tax rate 1,582,391 2,247,776 780,257 652,344 Adjustment in respect of current income tax of previous period 2,905 (7,354) 905 (4,750) Effects of: Promotional privileges (55,024) (45,540) (26,845) (19,827) Dividend income not subject to tax (7,468) (3,810) (647,214) (488,792) Tax loss not utilised 39,549 6,143 - - Gain on fair value adjustment of investment (29,613) (412,861) - - Share of income from investment in associated companies (197,619) (222,563) - - Non-deductible expenses and others 66,910 59,359 14,857 27,287 Additional expenses deductions allowed (10,053) (10,305) (2,302) (516) Total (193,318) (629,577) (661,504) (481,848) Income tax reported in the income statements 1,391,978 1,610,845 119,658 165,746 Effective income tax rate 17.59% 16.48% 3.07% 5.84%

The components of deferred tax assets and deferred tax liabilities are as follows: (Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements As at As at As at As at As at As at 31 December 31 December 1 January 31 December 31 December 1 January 2013 2012 2012 2013 2012 2012 Deferred tax assets Allowance for doubtful accounts 86,262 56,949 60,883 41,994 25,400 26,928 Allowance for diminution in value of inventories 328 359 312 91 359 200 Allowance for asset impairment 14,168 10,390 11,006 23,019 4,000 4,000 Accrued expense and other provision 32,710 31,498 22,034 12,025 7,633 5,302 Provision for long-term employee beneųts 231,448 217,989 175,794 47,675 42,505 29,703 Unused tax loss - 26,990 78,893 - - - Others (481) 8 25,356 - - - Total 364,435 344,183 374,278 124,804 79,897 66,133 150 Notes to consolidated financial statements

(Unit: Thousand Baht) Consolidated ųnancial statements Separate ųnancial statements As at As at As at As at As at As at 31 December 31 December 1 January 31 December 31 December 1 January 2013 2012 2012 2013 2012 2012 Deferred tax liabilities Accumulated depreciation - plant and equipment 130,769 93,347 55,014 34,576 25,731 16,553 Amortisation of expense for debentures, and loan 2,153 1,229 1,747 2,152 1,229 1,747 Gain on fair value adjustment of investment properties 4,914 3,785 209 54,967 50,223 46,648 Gain (loss) on re-measuring available-for-sale investments (7,654) 1,000 274,470 (7,818) 890 274,419 Revaluation surplus on land and building 1,627,845 1,471,808 1,374,570 187,759 197,494 102,662 Total 1,758,027 1,571,169 1,706,010 271,636 275,567 442,029

In October 2011, the cabinet passed a resolution to reduce the corporate income tax rate from 30 percent to 23 percent in 2012, and then to 20 percent from 2013. In addition, in order to comply with the resolution of the cabinet, in December 2011, the decreases in tax rates for 2012 - 2014 were enacted through a royal decree. The Company and its subsidiaries reŴected the changes in tax rates in its deferred tax calculation, as presented above.

32. Earnings per share Basic earnings per share is determined by dividing proųt for the year attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year.

33. Long-term lease agreements The Company The Company has entered into a land rental agreement for a car parking building for a period of 20 years from 26 February 2004 to 25 February 2024. The rental fee for the ųrst 17 months is Baht 200,000 per month and will be increased by the rate as agreed in the agreement. The rental for the last 3 years will be Baht 560,000 per month.

The Company has entered into a land rental agreement for construction of an OPD building for a period of 30 years from 28 September 2004 to 27 September 2034. The ųrst payment date is 10 October 2005 at the rental fee of Baht 50,000 per month and this fee is to be increased every 3 years. The rate will be increased by 10% of the latest rental of every 3 years.

The Company had entered into a land rental agreement for a period of 1 year from 1 September 2012 to 31 August 2013. The Company is in the process of renewal the rental agreement for another 1 year.

The Company has entered into a land rental agreement for a period of 30 years from 1 January 2006 to 31 December 2035 and the rental is paid on a monthly basis. The ųrst payment date is 5 January 2006 and rental to be paid at Baht 30,000 per month and from 1 January 2027 onward at Baht 100,000 per month. 151 Notes to consolidated financial statements 152 Samitivej PublicCompanyLimited year andleaseholdrightofBaht300milliononthe period of30yearsfrom5April2013to42043.TheCompanyhaspayrentalfeeat TheCompanyhasenteredintoalandandbuildingagreementtooperatehospitalbusiness andrelatedservicesfora fee stipulatedinagreementwhicheverishigher. the ratestipulatedinagreement,ofmonthlygrossoperatingrevenuebeforedeductedanyexpensesorminimum clinic inabuildingforperiodof3yearsfrom28September2013to272016.TheCompanyhaspayfee at TheCompanyhasenteredintoarentalagreementandmedicalserviceswithcompanytooperate of thelatestrentaleverythreeyears. rental tobepaidatBaht100,000permonthandthisfeeisincreasedevery3years.Theratewillby10% and therentalispaidonamonthlybasiswithnofor TheCompanyhasenteredintoalandrentalagreementforperiodof30yearsfrom18March2011to172041 5 years.TherentalforthelastyearswillthusbeBaht990,943peryear. rental onayearlybasis.Therentalfeeforthe Theagreementwillcoveraperiodof30yearsafterthesigningdateandCompanyisobligedtopay another landandhospitalbuildingrentalagreementwiththatgovernmentauthority. ownership oversuchbuildingtothatauthority.Aftertheauthorityacceptstransfer,in2006Companyenteredinto The conditionoftheagreementstatesthatuponcompletionbuildingconstruction,Companyhastotransfer TheCompanyhasenteredintoanagreementtoconstructahospitalbuildingonlandownedbygovernment authority. agreement. the year2013anditisin process ofextensiontheagreement.Therentalfeeispaid on yearlybasisasstipulatedinthe Thesubsidiarycompany enteredintoalandrentalagreementwith state enterpriseforaperiodof3yearsexpiringin Phyathai 1HospitalCo.,Ltd. the rentalfeeispaidonamonthlybasisatamountas stipulated intheagreement. Thesubsidiarycompanyenteredintoalandandpremisesrentalagreementwhichwill beexpiredinJanuary2037,and Paolo MedicCo.,Ltd. construction ofahospitalforperiod30years,commencing 1September1993,withoptionstorenew. Thesubsidiarycompanyenteredintoanagreementwithassociation whichisashareholder,toleaselandforthe BNH MedicalCenterCo.,Ltd. whichever ishigher. agreement, ofmonthlygrossoperatingrevenuebeforededucted anyexpensesortheminimumfeestipulatedinagreement a buildingforperiodof5yearsfrom28May2010.Thesubsidiarycompanyhastopayfeeattheratestipulated in the Thesubsidiarycompanyhasenteredintoamedicalservicesagreementwithtooperateclinicin in theparkingbuildingfor30yearstotalingBaht103.4million. In addition,thesubsidiarycompanyhasenteredintoaserviceagreementwithsameforprovidingofservices to payBaht38.8millionasprepaidrentalpertheschedule.Theremainingfeewillbepaidonamonthly basis. effective from8December2004.ThetotalrentalfeewillthusbeBaht155.1million.subsidiarycompanyiscommitted subsidiarycompanyhasenteredintoarentalagreementforparkingbuildingdated10September 2003,for30years, The ų rst 5yearsisBaht492,676peryearandthisfeetobeincreasedevery ų rst dateofagreement.Theleaseholdrightwasfullypaid. ų rst 3months.The ų rst paymentdateis18July2011and ų xed rateofBaht16,449,525per Notes to consolidated financial statements ------529 529 132 132 153 Over 5 years Over 5 years (Unit: Million Baht) (Unit: Million Baht) 3 9 - - - - - 55 46 118 115 nancial statements nancial statements ų ų - - 21 29 23 29 20 267 340 369 418 Separate Separate ------24 426 450 1,184 1,184 Over 5 years 1 -5 years Over 5 years 1 -5 years As at 31 December 2012 As at 31 December 2013 As at 31 December 3 - 97 56 80 350 127 104 581 222 458 nancial statements nancial statements ų ų 1 -5 years Within 1 year 1 -5 years Within 1 year - 98 157 320 112 270 236 748 1,471 2,060 1,352 Consolidated Consolidated Within 1 year Within 1 year ce equipment rental and other services ce equipment rental and other services ų ų and maintenance contracts (including long-term agreements in Note 33) and maintenance contracts the building construction and decoration contracts the building construction and decoration contracts - the sale and purchase contract for land Total - the medical equipment provision - Contractual commitments - the land and building rental contracts -of the Total Contractual commitments - the land and building rental contracts 33) Note in agreements long-term (including -of the - the medical equipment provision - 34. Commitments and contingent liabilities 34. Commitments liabilities are as follows: and 2012, commitments and contingent As at 31 December 2013 Sriracha Nakorn General Hospital Public Co., Ltd. Sriracha Nakorn General rental fee is paid Department and the into a land rental agreement with the Treasury The subsidiary company entered stipulated in the agreement. on monthly basis as Notes to consolidated financial statements 154 such asfacilityusageandcontractualperformance. of theCompanyanditssubsidiariesinrespectcertainperformancebondsasrequirednormalcoursebusiness, million (2012:Baht198million)andtheCompany'swas3326issuedbybankonbehalf Asat31December2013,theCompanyanditssubsidiarieshadoutstandingbankguaranteesofapproximatelyBaht263 Contingent liabilities 36. Promotionalprivileges the revenues,operatingpro management considerstoaggregateoperatingsegmentsintoonesegmentofhospitaloperation.Asaresult, all of quantitative basisisover90percentofthetotalpopulationbothoperationalandgeographicalareas.Forthisreason, the Ashospitaloperationisthemainbusiness segmentandtheinformationthathasbeenconsideredbasedona overseas. Inaddition,theoperationsofCompanyand itssubsidiariesarecarriedoninthegeographicalareasofThailandand economic characteristics.Theybothhavecommoncustomergroup,similarserviceprovisionmethodsandmanagement. and informationservice,trainingbusiness,healthinsurancelifebroker.Thesetwosegmentshavesimilar management forhealthcarebusiness,restaurantanddistributionofhealthfoodproductsfacilitymanagement,technology support hospitalbusinessincludingcentrallab,manufactureranddistributorofmedicinepharmaceuticalproducts,assets TheCompanyanditssubsidiarieshavetworeportablesegmentsthatarehospitaloperationsotherbusinesses its performance.Thechiefoperatingdecisionmakerhasbeenidenti the chiefoperatingdecisionmakerinordertomakedecisionsaboutallocationofresourcessegmentandassess Operatingsegmentinformationisreportedinamannerconsistentwiththeinternalreports thatareregularlyreviewedby 35. Segmentinformation more ofitsrevenues. Fortheyears2013and2012,Companyitssubsidiarieshasnomajorcustomerwithrevenueof10 percent or operating segmentandgeographicalarea. exemptionperiod. -Exemptionfromincometaxondividend paidfromthepro from severalyears. the lossasadeductionagainst netpro Incaseoflossesbeingincurredduringthecorporate incometaxexemptionperiod,theCompanyisallowedtoutilise revenuesare oftheinvestmentexcludinglandandworkingcapitalforaperiod of8yearscommencingfromthedatethat - Exemption fromcorporate incometaxderivedfromthepromotedoperation,withlimitedrateof100percent -Exemptionofimportdutyonmachineryasapprovedbythe board. as follows: promotional certi TheCompanyhasbeengrantedpromotionalprivilegesunder The InvestmentPromotionActB.E.2520,accordingtothe ų cate No.2302(2)/2553,dated26November2010,forhospital businessType 7.7.Signi ų rst derivedfromthepromotedoperation. ų ts andassetsasre

ų ts foraperiodof5yearsafter exemptionperiod,whetherfromanyoneyearor Ŵ ected inthese ų nancial statementspertaintotheaforementionedreportable ų t ofthepromotedoperations throughout thetax ų ed astheexecutivecommittee. ų cant privilegesare Notes to consolidated financial statements 155 cant privileges ų t of the promoted operation throughout the tax exemption t of the promoted operation throughout the tax exemption t of the promoted operation throughout the tax exemption t of the promoted operation throughout ų ų ų ts for a period of 5 years after exemption period, whether from any one year or ts for a period of 5 years after exemption period, whether from any one year ts for a period of 5 years after exemption period, whether from any one year or ts for a period of 5 years after exemption period, whether from any one year ts for a period of 5 years after exemption period, whether from any one year or ts for a period of 5 years after exemption cant privileges are as follows: ų ų ų ų cate No. 1719(2)/2547, dated 1 September 2004, for hospital business Type 7.11. 2004, for hospital business Type cate No. 1719(2)/2547, dated 1 September ų cate No. 1913(2)/2554, dated 4 August 2011, for production of medicines and/or active cate No. 1913(2)/2554, dated 4 August 2011, for production of medicines and/or ų cate No. 1686(2)/2547, dated 25 August 2004, for hospital business Type 7.11. Signi Type dated 25 August 2004, for hospital business cate No. 1686(2)/2547, ų rst derived from the promoted operation. rst derived from the promoted operation. rst derived from the ų ų rst derived from the promoted operation. cant privileges are as follows: ų ų as approved by the board. - Exemption of import duty on machinery operation, with the limited rate of 100 percent of - Exemption from corporate income tax derived from the promoted the investment excluding land and working capital for a period of 5 years commencing from the date that revenues are Company is allowed to utilise case of losses being incurred during the corporate income tax exemption period, the In the loss as a deduction against net pro from several years. - Exemption from income tax on dividend paid from the pro period. A.N.B. Laboratories Co., Ltd. A.N.B. Laboratories Co., Ltd. has been granted promotional privileges under The Investment Promotion Act B.E. 2520, according to the promotional certi 6.5. Signi ingredients in medicines. Type period. Signi of import duty on machinery as approved by the board. - Exemption percent of income tax derived from the promoted operation, with the limited rate of 100 - Exemption from corporate of 8 years commencing from the date that revenues are the investment excluding land and working capital for a period In case of losses being incurred during the corporate income tax exemption period, the Company is allowed to utilise the loss as a deduction against net pro from several years. - Exemption from income tax on dividend paid from the pro under The Investment Promotion Act B.E. 2520, Bangkok Samui Hospital Co., Ltd. has been granted promotional privileges according to the promotional certi Wattanavej Co., Ltd. 2520, according The Investment Promotion Act B.E. granted promotional privileges under Wattanavej Co., Ltd. has been certi to the promotional period. Bangkok Samui Hospital Co., Ltd. are as follows: board. duty on machinery as approved by the - Exemption of import the limited rate of 100 percent of derived from the promoted operation, with from corporate income tax - Exemption that revenues of 8 years commencing from the date land and working capital for a period the investment excluding are to utilise during the corporate income tax exemption period, the Company is allowed In case of losses being incurred the loss as a deduction against net pro from several years. - Exemption from income tax on divided paid from the pro Notes to consolidated financial statements 156 non-promoted operationasfollows: RevenuesoftheCompanyanditssubsidiariesforyears20132012canbeseparatedbetweenpromoted The Companyanditssubsidiariesmustcomplywiththeconditionsstipulatedininvestmentpromotionalprivileges. period. -Exemptionfromincometaxondividendpaidthepro orfromseveral years. thelossasadeductionagainstnetpro -Incaseoflossesbeingincurredduringthecorporateincometaxexemptionperiod,Companyisallowedtoutilise fromproductionprocess. -Revenuesthatmustbeincludedincalculationofnetpro theinvestmentexcludinglandandworkingcapitalforaperiodof5yearscommencingfromdatethatrevenuesare -Exemptionfromcorporateincometaxderivedthepromotedoperation,withlimitedrateof100percent from productionprocess25January2010.Signi such aspillsandcapsules,liquidpreparations,powders,ointments,creams,gelsbyproductsscraporwaste according tothepromotionalcerti TheMedicpharma Co.,Ltd.hasbeengrantedpromotionalprivilegesunderTheInvestmentPromotionActB.E.2520, The MedicpharmaCo.,Ltd Total revenues Other income operations Revenue fromhospital Total revenues Other income operations Revenue fromhospital ų rst derivedfromthepromotedoperation. . 1,286,435 462,495 462,495 823,940 462,495 Promoted operation Promoted operation 2013 2013 ų - cate No.1218(2)/2553,dated3March2010,forproductionofmedicineshumanuse, ų ts foraperiodof5yearsafterexemptionperiod,whetherfromanyoneyear 1,165,766 1,146,601 341,128 341,128 2012 2012 19,165 - ų cant privilegesareasfollows: Consolidated ų Separate t isrevenuefromsalesofbyproductssuchasscraporwaste ų 14,780,648 10,469,054 50,202,384 48,707,386 Non-promoted operation Non-promoted operation t ofthepromotedoperationthroughouttaxexemption 4,311,594 1,494,998 2013 2013 ų nancial statements ų nancial statements 12,515,273 46,696,393 43,160,727 2,854,975 9,660,298 3,535,666 2012 2012 15,243,143 10,931,549 51,449,173 49,169,881 4,311,594 2,279,292 2013 2013 Total Total (Unit: ThousandBaht) (Unit: ThousandBaht) 12,856,401 10,001,426 47,862,159 44,307,328 2,854,975 3,554,831 2012 2012 Notes to consolidated financial statements nancial ų 157 (Unit: Million Baht) oating interest Ŵ nancial statements ų nancial institution by - ų 2013 nancial institution as if the ų Separate xed interest rate per annum on the ų nancial instruments for speculative or ų 2012 2012 nancial assets and liabilities mentioned in nancial assets and liabilities nancial risks associated with these nancial risks associated ų ų ned under Thai Accounting Standard No. 107 ned under Thai Accounting nancial statements ų ų nancial position date was as follows: nancial assets and liabilities bear ų ų - 2013 Consolidated xed rate per annum to ų ve-year interest rate swap contract with a ve-year interest rate swap contract with ų uctuations in interest rate. Ŵ nancial position date. ų nancial instruments, which are de nancial instruments, ų nancial statements. The Company and its subsidiaries have the The Company and its subsidiaries have nancial statements. ų oating rate based on Fixed Deposit Rate plus Ŵ xed interest rates which are close to the market rate and the Company enters into interest rate swap contract to xed interest rates which are close to the ų Fair value of interest rate swap contracts has been calculated using the rate quoted by a Fair value of interest rate swap contracts has been calculated using the rate Fair value of interest rate swap contract (liabilities) (11.2) (11.2)

long-term loan balance. The contract has already expired in September 2013. The net fair value of the interest rate swap contract at the statement of “Financial Instruments: Disclosure and Presentation”, principally comprise the Disclosure and Presentation”, principally “Financial Instruments: Note 5.20 to they are managed is described below. instruments and how 37.1 Financial risk management rates and foreign currency its subsidiaries are exposed to risk arising from changes in market interest The Company and not of contractual obligation by counterparties in the future. The subsidiaries do exchange rates, and from nonperformance to Company uses derivative instruments as and when they consider appropriate, use derivative instruments, while the nor subsidiaries hold or issue derivative manage such risks. Neither the Company trading purposes. 37.2 Interest rate risk cash at banks, bank overdrafts, and its subsidiaries are exposed to interest rate risk relates primarily to its The Company debentures. However, most of short-term loans, long-term loans, and rates or converting 37. Financial instruments The Company and its subsidiaries’ a On 15 September 2008, the Company entered into manage this risk as appropriate. presented in notes 23 and 25 respectively. The long-term loans and debentures were Interest rate swap contract rate swap are used to manage exposure to Interest contract was terminated at the statement of Notes to consolidated financial statements 158 - Debentures - Liabilities under - Long-term loans Trade andotherpayables - from Bankoverdraftsandshort-termloans - Financial liabilities - Investments - Restricted Trade andotheraccountsreceivable - - Short-term investments Cashandcashequivalent - Financial Assets - Debentures - Liabilities under - Long-term loans Trade andotherpayables - from Bankoverdraftsandshort-termloans - Financial liabilities - Investments - Restricted Long-termdepositat - Trade andotheraccountsreceivable - - Short-term investments Cashandcashequivalent - Financial Assets

Signi ų ų ų nancial institution nancial institution cant ų ų nancial institutiondeposit nancial institutiondeposit ų nancial assetsandliabilitiesclassi ų ų nance leaseagreements nance leaseagreements ų nancial institutions Within 1year Within 1year 3,296 2,000 1,200 3,056 2,969 683 211 451 528 120 389 93 21 - - - 84 19 - - - - 3 3 - ų ed bytypeofinterestrateareasfollows: Fixed interestrates Fixed interestrates 1-5 years 1-5 years 6,077 3,499 2,503 9,056 6,464 2,506 10 10 75 86 ------Consolidated Consolidated As at31December2013 As at31December2012 Over 5years Over 5years 7,591 7,591 600 600 ------ų ų nancial statements nancial statements interest rate interest rate Floating Floating - 6,077 6,058 3,653 3,651 6,964 6,939 3,035 3,120 19 ------25 ------2 2 Non-interest Non-interest 18,539 13,593 bearing bearing 17,810 13,360 4,021 4,021 4,925 4,287 3,614 3,614 - 21 ------57 19 - - - - - (Unit: MillionBaht) (Unit: MillionBaht) 22,730 13,593 26,822 14,059 23,530 21,528 13,360 Total Total 8,564 4,021 4,925 4,061 9,064 9,448 3,614 1,225 4,287 3,590 159 120 179 268 19 21 10 23 Notes to consolidated financial statements 17 14 29 962 207 961 885 913 987 1,567 5,325 1,200 2,797 9,075 9,064 1,756 5,733 2,926 8,255 Total Total 34,429 42,490 23,114 14,059 26,256 36,848 46,149 159 (Unit: Million Baht) (Unit: Million Baht) - - 3 2 ------962 961 961 885 987 987 34,429 35,394 bearing bearing 36,848 37,735 Non-interest Non-interest ------207 913 1,564 5,325 7,096 2,797 6,575 9,372 8,200 2,926 5,755 8,681 1,554 5,733 Floating Floating interest rate interest rate nancial statements nancial statements ų ų ------600 600 7,591 7,591 Over 5 years Over 5 years As at 31 December 2012 As at 31 December 2013 As at 31 December Separate Separate ------11 18 2,500 6,464 8,975 2,500 3,499 6,017 1-5 years 1-5 years Fixed interest rates Fixed interest rates 6 ------14 11 200 214 1,200 2,000 3,206 2,969 2,980 Within 1 year Within 1 year nance lease agreements nance lease agreements ų ų nancial institution deposit ų nancial institutions ų - Debentures Financial Assets - Cash and cash equivalent - and other receivables Trade - Short-term loans to related parties - Long-term loans to related parties - Investments Financial liabilities - Bank overdrafts and short-term loans from - and other payables Trade - Short-term loans from related parties loans - Long-term under - Liabilities - Debentures - Long-term loans to related parties - Investments Financial liabilities - and other payables Trade - Short-term loans from related parties loans - Long-term under - Liabilities Financial Assets - Cash and cash equivalent - and other receivables Trade - Short-term loans to related parties - Restricted Notes to consolidated financial statements 160 SincethemajorityofCompany’sanditssubsidiaries’ or byusinganappropriatevaluationtechnique,depending on thenatureofinstrument. parties inanarm’slengthtransaction.Thefairvalueisdeterminedbyreferencetothemarketpriceof Afairvalueistheamountforwhich anassetcanbeexchangedoraliabilitysettledbetweenknowledgeable,willing in thestatementof rates whichareclosetomarketrate,theirfairvalueisnotexpectedbemateriallydifferentfromtheamountspresented 37.5 Fairvaluesof stated inthestatementof base. Themaximumexposuretocreditriskislimitedthecarryingamountsofreceivables,loansandotherreceivables as Inaddition,theCompany anditssubsidiariesdonothavehighconcentrationofcreditrisksinceithasalargecustomer control policiesandproceduresthereforedonotexpecttoincurmaterial bill ofexchangeandotherreceivable.TheCompanyitssubsidiariesmanagetheriskbyadoptingappropriate credit TheCompanyanditssubsidiariesareexposedtocreditriskprimarilywithrespect totradeaccountsreceivable,loans, 37.4 Creditrisk were asfollows: Asat31December2013and2012,asubsidiarycompanyhastheoutstandingbalanceofforwardexchangecontracts Forward exchangecontract manage thisriskbyenteringintoforwardexchangecontracts.Generally,thecontractsmaturewithinoneyear. equipment andsalesofgoodstransactionswhicharedenominatedinforeigncurrencies.Asubsidiarycompanyseeksto TheCompanyanditssubsidiariesareexposedtoforeigncurrencyriskmainlyinrespectofpurchasemedicaltools 37.3 Foreigncurrencyrisk These 39. Approval offinancial statements debt-to-equity ratiowas0.8:1.0(2012:0.8:1.0)andtheCompany's was1.0:1.0(2012:0.9:1.0). capital structureinordertosupportitsbusinessandmaximise shareholdersvalue.Asat31December2013,theGroup's Theprimaryobjectiveof the Company’sanditssubsidiaries’capitalmanagementistoensurethattheyhaveappropriate 38. Capitalmanagement 31 December2012 31 December2013 ų Balance asat nancial statementshavebeen authorisedforissuebytheCompany’sBoardofDirectors on28February2014. ų nancial instruments ų nancial position. ų nancial position.

Foreign currency US Dollar US Dollar ų nancial instrumentsbear Amount bought 1,889,271 255,442 ų nancial losses. Contractual exchangerateforamountbought Ŵ oating interestratesor (Baht perforeigncurrencyunit) 30.89 -31.14 31.25 -33.01 ų nancial instrument ų xed interest General Information

General Information

Type of Business Health Care Business

Location 2 Soi Soonwijai 7, New Petchaburi Road, Bangkapi, Huay Kwang, Bangkok 10320 Telephone 1719, 02-310-3000 Fax 02-310-3252, 02-310-3327

Company Registration BorMorJor. 0107537000025 Number www.bangkokhospital.com Web site Baht 1,700.00 million with Baht 1,549.10 million Registered Capital in paid-up capital, divided into 1,549.10 million common shares with par value of Baht 1 each

Reference Information Securities Registrar Thailand Securities Depository Co., Ltd. 4th Floor, Stock Exchange of Thailand Building, 62 Ratchadaphisek Road, Klongtoey, Bangkok 10110 Telephone 02-229-2800, 02-654-5599 Fax 0-2359-1259

Bond Registrar TMB Bank Public Company Limited 10th Floor, 393 Silom Road, Silom, Bangrak, Bangkok 10500 Telephone 02-230-5878, 02-230-5756 Fax 02-230-6093

Bond Representative KasikornBank Public Company Limited Securities Service Department 400/22 Kasikorn Bank Building, 11th Fl., Paholyotin Road Samsennai, Phayathai, Bangkok 10400 Telephone 02-470-1952, 02-470-3687 Fax 02-470-3684

Auditor EY Ofųce Limited. (formerly known as Ernst & Young Ofųce Co., Ltd.) 33rd Floor, Lake Rajada Building, 193/136-137 Ratchadaphisek Road, Klongtoey, Bangkok 10110 Telephone 02-661-9190, 02-264-0777 Fax 02-661-9192, 02-264-0789-90 161 Juristic persons in which the company holds 10% of shares or greater as at December 31, 2013

Date Shares issued Name Registered Location Business and Paid-up % holding

1 N Health Asia Pte. Ltd. 8 April 2014 Singapore Holding company 40,000 USD 100.00% par value USD 1/share

2 BDMS Inter Pte. Ltd. 8 April 2014 Singapore Holding company 40,000 USD 100.00% Par value USD 1/share

3 Bangkok Hospital Surath Co., Ltd. 26 June 2014 2 Soi Soonwijai 7, New Petchaburi Rd., Private Hospital 30,000,000 100.00% Bangkok Paid-up Baht 10/share

4 Thonburi Medical Centre PCL 7 Jan 1993 337 Taksin Road, Thonburi, Bangkok Private Hospital 19,384,226 26.33% Held through RBH 29.03% Par value Baht 10/share

5 Samitivej Chonburi Co., Ltd. 22 Aug 2014 133 Sukhumvit 49, Klongtan, Wattana, Private Hospital 60,000,000 100.00% Bangkok paid-up Baht 2.5/share Juristic persons in which the company holds 10% of shares or greater 6 Bangkok Hospital Phitsanulok Co., Ltd. 26 Aug 2014 138 Pra Ong Dum RoadTambon Nai mueng, Private Hospital 60,000,000 100.00% Ampor Mueng, Phitdanulok Province Par value Baht 10/share

7 Bangkok Hospital Khon Kaen Co., Ltd. 8 Feb 2014 2 Soi Soonwijai 7, New Petchaburi Rd., Private Hospital 60,000,000 100.00% Bangkok Par value Baht 10/share

8 Bangkok Hospital Chaingmai Co., Ltd. 24 May 2013 2 Soi Soonwijai 7, New Petchaburi Rd., Private Hospital 100,000,000 100.00% Bangkok Par value Baht 10/share

9 Bangkok Hospital Udon Co., Ltd. 28 May 2007 111 Thongyai Rd. Mak Khaeng, Muang, Private Hospital 50,000,000 100.00% Udon Thani Province Par value Baht 10/share

10 Prasit Patana Plc. (PPCL) 24 Jan 1975 943 Paholyothin Road, Samsennai, Holding Company 1,108,208,020 98.43% Phyathai, Bangkok Par value Baht 1/share

11 Phyathai 1 Hospital Co., Ltd. 11 Dec 2001 364/1 Sri Aduddaya Rd., Phayathai, Private Hospital 48,100,000 100.00% Held through PPCL Radjdhevee, Bangkok Par value Baht 10/share

12 Phyathai 2 Hospital Co., Ltd. 7 Sep 1984 943 Phaholyothin Rd., Samsennai, Private Hospital 22,511,351 99.16% Held through PPCL Phyathai, Bangkok Par value Baht 10/share Common share 5,442,995 13 Phyathai 3 Hospital Co., Ltd. 24 Sep 1996 111 Phet Kasem Rd., Pak Khlong Tarat, Private Hospital Prefer share 3,750,000 98.22% Held through PPCL Phasi Charoen, Bangkok Par value Baht 10/share 100.00% 14 Sriracha Nakorn General Hospital PLC. 29 April 1992 90 Sriracha Nakorn Rd., 3 Sriracha, Private Hospital 35,954,180 74.07% Held through PCL. Sriracha, Chonburi Province Par value Baht 10/share

15 Paolo Medic Co., Ltd. 8 Oct 1986 670/1 Phaholyothin Rd., Samsennai, Private Hospital 30,000,000 100.00% Phyathai, Bangkok Par value Baht 10/share

16 Paolo Samutprakarn Co., Ltd. 30 Jan 1992 123 Srinakarin Rd.,Tambon Banmueng, Private Hospital 8,400,000 93.45% Ampor Mueng, Samut Prakran Province Par value Baht 5/share Common Share 8,700,000 17 Siam Medical Co., Ltd. 7 Jul 1970 1 Chokchai Rd., 4 Lat Phrao, Khet Lat Phrao, Private Hospital Prefer share 1,300,000 85.22% Bangkok Par value Baht 10/share 89.13% 18 Thai Medical Center PLC. 27 Jan 1993 44/505 Navamin Rd., Khet Bueng Kum, Private Hospital 200,538,671 Bangkok Par value Baht 10/share 99.76%

19 Bangkok Hospital Khao Yai Co., Ltd. 18 Jul 2007 2 Soi Soonwijai 7 New Petchaburi Rd., Private Hospital 7,000,000 Bangkok Par value Baht 10/share 100.00%

20 Bangkok Hospital Samui Co., Ltd. 14 Aug 2003 57 Moo 3, Bor Pud Samui Island, Private Hospital 15,000,000 100.00% Suratthani Province Par value Baht 10/share

21 Bangkok Hospital Rayong Co., Ltd. 13 Aug 2002 8 Moo 2, Soi Saengchanniramit Private Hospital 40,000,000 100.00% Nern Pra, Muang Rayong Province Par value Baht 10/share

22 Bangkok Hospital Trad Co., Ltd. 25 Jan 1994 276 sukhumvit RoadMuang, Trad Province Private Hospital 50,000,000 99.76% Par value Baht 5/share

23 Wattanavej Co., Ltd. 28 Oct 1983 25/14 Thaluang Road Muang, Private Hospital 18,000,000 99.69% Chantaburi Province Par value Baht 10/share 162 Juristic persons in which the company holds 10% of shares or greater 163 99.69% 98.79% 97.27% 95.76% 91.48% 90.94% 84.00% 80.00% 70.00% 49.00% 49.00% 49.00% 95.00% 74.02% 30.00% 99.94% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% % holding 6,500 10,000 10,000 10,000 1,000,000 7,500,000 5,000,000 2,000,000 28,000,000 58,611,935 30,000,000 10,500,000 20,000,000 73,600,000 49,900,000 10,500,000 100,000,000 100,000,000 100,000,000 1,000 Par value 1,000 Par value 1,000 Par value 1,000 Par value KHR 20,000/share KHR 20,000/share KHR 20,000/share and Paid-up Shares issued KHR 9,200,000/share Par value Baht 5/share Par value Baht 5/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par value Baht 10/share Par valueAED 1,000/share Par value USD1,000/share Par value USD 1,000/share Par value USD 1,000/share Par value Baht 1,000/share Manufactureand distribution of medicine Health insurance Insurance Broker Holding Company Private Hospital Private Hospital Private Hospital Private Hospital (Samitivej Sukhumvit, Samitivej Srinakarin) Private Hospital Private Hospital Private Hospital Private Hospital in Camobia Private Hospital in Cambodia Private Hospitalin Cambodia (Not yet in operations) Private Hospitalin Cambodia (Not yet in operations) Land Holding Company Land Holding Company Land Holding Company Bio molecularlaboratories Share service company Accounting Services Private Hospitalin UAE Informationtechnology ce Number 1401, Hamdan Street, ų Abu Dhabi, United Arab Emirates 2301/2 Dental center, New Petchaburi Road, Bangkok 2 Soi Soonwijai 7, New Petchaburi Road, Bangkok 39/1 Ram-Indra Road, Kannayao, Bangkok 2 Soi Soonwijai 7New Petchaburi Road, Bangkok 2301/2 New Petchaburi Road, Bangkok 2/1 Hongyokuthit Road, Muang, 2/1 Hongyokuthit Road, Muang, Phuket Province 75 Soi 15, Petchkasem Road, Muang, Songkla Province 301 Sukhumvit Road, km 143, Pattaya, Chonburi Province 133 Sukhumvit 49 Klongtan, Wattana, Bangkok 9/1 Convent Road, Silom, Bangrak, Bangkok 1308/9 Mitraparp Road, Nai Muang, Muang, Nakornratchasima Province 288 Suksawat, Muang, Samutprakarn Province National Road No.6, Kruos Village, Svay Dangkom Commune, Siem Reap District, Siem Reap Province, Cambodia. No.11, Street 592, Sangkat Boeung Kak 2, Kok, Phnom Penh, Cambodia. Khan Toul Thla Village, Russian Federation Blvd., Toeuk Thla, Khan Russey Keo, Sangkat Toeuk Phnom Penh, Cambodia. 61A Street 214, Sangkat Beong Rang, Khan Don Peh, Phnom Penh, Cambodia. 517 Road No.6, Phum Salakanseng, Khum Svay Damdum, Srok Khet, Siem Reap, Cambodia. 517 Road No.6, Phum Salakanseng, Khum Svay Damdum, Srok Khet, Siem Reap, Cambodia. No.61 Street 214, Sangkat Beong Rang, Khan Don Peh, Phnom Penh, Cambodia. 2 Soi Soonwijai 7, New Petchaburi Rd., Bangkok 2301/2 New Petchaburi Rd., Bangkok 2 Soi Soonwijai 7, New Petchaburi Road, Bangkok 14th Floor, AI Gaith Tower Of Date Jun 2007 2 Jan 1981 1 Jun 1961 7 Sep 1992 7 Nov 2001 25 Jul 2001 17 Jul 2003 27 Jul 1995 1 May 1989 21 Jun 2007 29 Aug 2011 18 Aug 2008 27 Aug 1991 15 Mar 1994 11 Feb 2008 10 Feb 2007 20 Dec 2005 20 Dec 2005 20 Dec 2005 28 Dec 1976 27 Nov 2007 27 Nov 2006 24 Nov 1992 Registered Location Business Name Bankok Premier Life Insurance Co., Ltd A.N.B. Laboratory Co., Ltd. Held through Royal Bangkok Healthcare Co., Ltd. Bangkok Health Insurance PCL Royal Bangkok Healthcare Co., Ltd.(RBH) Bio-Molecular Laboratories (Thailand) Co., Ltd. National Healthcare Systems Co., Ltd. Held through SVH and BNH 25.97% BDMS Accounting Co., Ltd. Changed from Asia International Healthcare Co., Ltd. Al Ghaith Bangkok Dusit Management Services LLC. Held through BDMS Acc Greenline Synergy Co., Ltd. Phnom Penh First Property Co., Ltd. Siem Reap Land Investment Co., Ltd. B.D.M.S. International Medical Services Co., Ltd. S.R.Property Investment Co., Ltd. Phnom Penh Medical Services Co., Ltd. Royal Rattanak Medical Services Co., Ltd. Angkor Pisith Co., Ltd. Bangkok Hosital Prapradaeng Co., Ltd. Bangkok Hospital Ratchasima Co., Ltd. BNH Medical Center Co., Ltd. (BNH) Samitivej Plc. (SVH) Bangkok Hospital Pattaya Co., Ltd. Bangkok Hospital Pattaya Bangkok Hospital Had yai Co., Ltd. Bangkok Hospital Had yai Bangkok Hospital Phuket Co., Ltd. Bangkok Hospital Phuket Co., 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 25 24 26 Date Shares issued Name Registered Location Business and Paid-up % holding

47 Samitivej Sriracha Co., Ltd. 30 Oct 1990 8 Soi Laemkate, Choem Chormphon Rd., Private Hospital 18,751,000 69.75% Held through SVH Si Racha, Si Racha, Chon Buri Province (Samitivej Sukhumvit, Samitivej Srinakarin) Par value Baht 10/share

48 The Medic Pharma Co., Ltd. 26 Aug 1971 124 Thonburi-Parktor Road, Bangkok Manufacture and 2,143,000 86.89% distribution of medicine Par value Baht 10/share

49 Bangkok Helicopter Services Co., Ltd. 29 Jun 1995 1111 Ploenchit Road, Lumpini, Patumwan, Air medical transport 10,000,000 49.00% Bangkok Par value Baht 10/share

50 Cool & Joy Co., Ltd. 20 May 2003 2 Soi Soonwijai 7, New Petchaburi Road, Public relations and 500,000 30.00% Bangkok marketing support Par value Baht 10/share

51 Ramkhamhaeng Hospital PCL. *** 25 Aug 1986 2138 Ramkhamhaeng Road, Bangkapi, Private Hospital 12,000,000 38.24% Bangkok Par value Baht 10/share Juristic persons in which the company holds 10% of shares or greater 52 Bumrungrad Hospital PCL. *** 15 Dec 1989 33 Sukumvith Rd., Soi 3 Klong Tun Nua, Private Hospital Common share 728,383,622 23.88% Wattana, Bangkok Par value Baht 1/share

53 Udon Pattana Co., Ltd. *** 9 Jun 1994 555/5 Posri Road, Muang, Private Hospital 30,000,000 15.26% Held trough PPCL 9.8% Udornthani Province Par value Baht 1/share

54 BDMS Training Co., Ltd. 23 Sep 2010 2 Soi Soonwijai 7, New Petchaburi Road, Training Center for staff 100,000 100.00% Bangkok within the network Par value Baht 10/share

55 Irving Sheridan SE Co., 14 Nov 2002 488 Srinakarin Road, Suanluang, Bangkok Assetmanagement 10,000 96.03% Ltd.Held through SVH Par value Baht 10/share

56 First Health Food Co., Ltd. 23 Mar 2004 488 Srinakarin Road, Suanluang, Bangkok Restaurant and 1,400,000 99.99% Held through SVH health food Par value Baht 10/share

57 Sodexo Healthcare Support Service 15 May 2004 23/93 Sornchai Building, Soi Sukhumvit 63, Other services 150,000 74.00% (Thailand) Co., Ltd. Held through Wattana, Bangkok Par value Baht 100/share First Health Food Co., Ltd.

58 SV Holding Co., Ltd. Held through SVH 28 Aug 2013 488 Srinakarin Road, Suanluang, Bangkok Investment company 400,000 100.00% Par value Baht 100/share

Note : ***The Company is shareholder only and is not involved in management of the business

164 angko mpany Limited vices Public Compan Dusit MedicalBangkok Servic D y Limited es Public Company Medical Services Pu Bangkok Dusit mited blic Company Limite cal Services PublicBan C angkok Dusit Medica ompany Limited Services Public Com Bangkok ok Dusit Medical Serv any Limited ces Public Company t MedicalBangkok Services Dusit P mited ublic Company Limit dical Servicessit Medic PubB BANGKOK DUSIT MEDICAL SERVICES Public Company Limited 2 Soi Soonvijai 7 New Phetchburi Rd., Bangkok, Thailand 10310 Tel. 66-2310-3000 Fax. 66-2318-1546 www.bangkokhospital.com